TorQuest's private equity funds seek control or joint control through management buyouts, leveraged buyouts, and recapitalizations in companies that operate in established industries. TorQuest is a generalist firm with deep relationships across many different industry sectors, but has developed particular competitive advantages in the most attractive sectors of manufacturing, business services, financial services, food, consumer products, and chemicals. TorQuest is focused primarily on opportunities within Canada, but has made a number of successful U.S. investments as well.

• Preferred Deal Size:
• Equity Investment of C$15 - $100 million per transaction
• Enterprise Value of C$40 - $250 million

• Investment Preferences:
  • Corporate Spin-Off
  • Entrepreneurial Transition
  • Management Buyout
  • PIPE Investments
  • Growth and Expansion Capital
  • Recapitalizations

TorQuest's principals have completed 15 investments in the chemicals sector over a 20 year period and have purchased over 10 divisions from large corporations. Examples of chemical industry investing and corporate carve-outs include:

Case Study: The Growth of Marsulex Inc.

• In 1989, Brent Belzberg, TorQuest's founding partner, spearheaded the acquisition of CIL Inc.'s sulphur products business, forming the independent company Marsulex in the process. At that time, Marsulex was the leading player in the North American sulphur chemical industry.
• Over the next nine years, Marsulex strengthened its relationships with key customers and expanded its technology base, product and service offerings and geographic reach, and established leadership positions servicing new industries such as oil refining and coal fired power plants.
• In 1996, Marsulex was listed on the Toronto Stock Exchange. Based on the listing price, the original investors' equity value had grown by approximately 20 times since 1989. Marsulex has since partnered with several major corporations, including Syncrude Canada in the Canadian Oil Sands to construct an environmental compliance facility.
• To date, the company's equity value has grown by nearly 100 times what Belzberg and others paid 20 years ago.

Case Study: Building SPI Polyols, Inc.

• In 1994, Belzberg lead the acquisition of ICI Plc.'s sugar alcohol business in Delaware and formed SPI Polyols.
• Working with management, they set out to globalize the business, strengthen its relationships with customers, add new products and applications, and drive innovation and operational efficiencies.
• Between 1994 and 1998, SPI Polyols completed four strategic investments in Brazil, France and North America, partnered with a Belgian company to build a new plant in France and successfully developed a number of new products.
• In four years, SPI Polyols grew into a global supplier of value-added specialty products.
• In 1998, Associated British Foods, a large diversified British conglomerate, acquired SPI Polyols in a transaction that valued the company at approximately five times what it was purchased for in 1994.

Case Study: Acquisition of Priority Control Systems and Traffic Detection Division from 3M

• In 2007, TorQuest partnered with management to acquire 3M's Opticom& Priority Control Systems and Canoga® Traffic Detection businesses. The independent company, which is headquartered in Minnesota, was named Global Traffic Technologies (GTT).
• TorQuest identified a number of opportunities that exist for the business as a standalone company and made a commitment to investing in the development of new products, services and technologies that provided value to GTT's customers.
• In the eighteen months of ownership, GTT's total number of employees increased from 27 on closing to approximately 50, primarily to support product development and sales.
• The investment in R&D has resulted in six patents being awarded, two patents pending, two filings and five in draft. In addition, three new software and one hardware application have been successfully launched to market during TorQuest's ownership.
• Despite the challenging environment for municipal spending, the investment in sales resources has dramatically increased the sales pipeline with significant sales being funded through stimulus dollars.

There are a number of attributes and guiding principals that make TorQuest Partners a unique investment partner:

We know how to find and create value

The TorQuest team has a proven track record in identifying and building value, as the case studies in the investment section show. We add value by identifying companies with significant growth potential, and by participating in the development of growth and acquisition strategies. We identify and arrange the most appropriate capital structures, provide equity and expertise, and work closely with quality management teams to build value.

We understand the power of partnership

Our position in the community provides access to the highest quality investors, managers and business partners. Where a transaction is too large for TorQuest, or where additional value may be achieved through the addition of partners with significant expertise, we will readily find those partners to invest alongside us. Many of our investors will want to co-invest with TorQuest which allows us to do larger sized transactions. We believe that creating partnerships, both inside and outside our investee companies, is essential. We seek to partner with strong management teams in our investments and, where necessary will work with them to supplement their skills and abilities to ensure success in areas such as acquisitions and capital markets.

We build strategies that outperform

Only by developing a deep understanding of operating environments, industry dynamics and specific business characteristics can we create sustainable value. We work with management to understand the nuts and bolts, not just the paperwork of our investments and the markets that affect their success. Our growth strategies are built on understanding businesses and the markets surrounding them, on partnering with experienced management and on a keen ability to execute.

We exercise discipline in our investment and operating approach

TorQuest invests in businesses which perform well but may require additional financial and operating support to ultimately realize maximum value. We also invest in under-performing businesses that require significant improvements. We will consider situations where there is a window of opportunity as a result of corporate restructuring, either operational or financial. We will not invest in under-performing businesses which lack strong financial or market fundamentals or where we cannot identify a clear opportunity to create them.

We place a high value on ethics

We are a highly principled team, placing a great value on a culture that breeds respect and co-operation with all those with whom we are involved. This is a central element of what makes us different and is not incidental to our strategy but ensures that we operate, at all times, in a respectful manner in whatever we do and that we share our skills and successes with the broader community. The partners of TorQuest are committed to participating, both financially and by investing their personal time, in community service.