Sector, Stage, and Management
Covington’s principal focus is mid to later stage enterprises operating primarily in the manufacturing, distribution, information technology, and healthcare sectors. We do not invest in real estate and resource based enterprises and do not provide seed or start-up funding. Covington places tremendous emphasis on proven management teams with previous successes – entrepreneurs who have demonstrated their ability to grow an enterprise to a successful exit.
Market Potential
Covington focuses on investments that have a large target market and the ability to grow in market capitalization and provide numerous exit possibilities. Our dedication to our investees continues beyond the initial funding through multiple follow-on financing rounds as the enterprise continues to grow. Companies should be able to provide a differentiator that will create and sustain a competitive advantage. Potential investees should have a strong potential to become market leaders within their target space.
Size, Structure, and Exit Potential
Investment sizes will typically range from $500,000 to $7 million and will take the form of equity and or debt structures that are flexible - we try to structure our investments to suit each company’s specific needs. We target opportunities that we believe can be exited within four to seven years and provide strong return multiples on our original investment.
Location
While our focus is primarily on enterprises based in Ontario, we review opportunities throughout Canada.
