Kensington’s private equity strategy is focused on two segments of the private equity market across Canada and the United States:
Mid-Market Buyouts of mature profitable businesses with total enterprise values typically ranging from $50 to $500 million, where management has developed a compelling plan to create substantial growth over the expected 3- to 5-year cycle. In this segment, we typically target gross internal rate of return (IRRs) of 25%, representing a tripling of equity value over 5 years.
Growth Equity and Venture Capital opportunities carry greater risk and target higher returns than the buyout sector. These less mature companies must show a strong growth trajectory based on a new technology or disruptive business model, led by an experienced team, in order to attract investment.