FAX Capital CEO Blair Driscoll joined Proactive New York to discuss the investment holding company's acquisition and investment strategy in small, privately-held, and publicly listed businesses across the capital structure.
Today, the Toronto, Canada-based group has a market capitalization of $180 million, approximately $230 million of net assets, and practices an active investment strategy through significant ownership on a minority basis, or through control of a portfolio company. Driscoll points to a central differentiating factor that FAX leverages over its competitors to create long-term value for all its stakeholders. Namely, FAX qualifies for longer investment periods because it is characterized as a permanent capital group, unlike most traditional private equity vehicles. Permanent capital investment groups do not need to be concerned with the redemption risks that a larger fund may encounter.
Driscoll says around 90% of publicly listed companies in Canada have a market cap of below $1.5 billion, creating a diverse set of market opportunities for FAX. He describes two of its current investments, a publicly-held assisted reproductive technologies services provider named Hamilton Thorne Ltd, and privately-held home inspections services company Carson, Dunlop & Associates Ltd.