Cadent commits between $25 million and $50 million of equity or equity-like capital per investment, or more in syndication with investment partners. We typically invest in private companies that have been self-financed to date, or have taken in some funding from professional investors. We also target opportunities to finance private mergers or acquisitions, corporate divestitures or spinouts, and restructuring situations (private or public).

Our portfolio is diverse in size and spans a wide range of sub-sectors within the energy industry. We evaluate every company on a case-by-case basis, and we will work closely with each management team to formulate and execute a strategy that leverages each organization's own competitive advantages. However, each of these companies do share common elements; a strong management team, a history of successful execution and an ability to grow. Required characteristics for Cadent investments include:

• Based in North America and energy-focused: Cadent invests exclusively in energy companies. While our portfolio companies do often conduct business internationally, they are generally headquartered, or they have a substantial presence, in Canada or in the United States.

• Small or medium size: Cadent's target investments typically have annual revenues ranging from $10 million to $100 million. Occasionally, we will consider investing in a start-up company with highly experienced management team with a proven record of creating shareholder value, such as a seasoned management team seeking to acquire and develop oil and gas properties.

• Clear strategy with well-conceived growth plan: The strategy, often involving organic growth and/or accretive acquisitions, will be logical and achievable with proven products and services evidenced by revenues and positive cash flow. We take a particularly close look at the company's competitive advantages, to ensure they can be protected from competition and are sustainable across industry cycles.

• First-class management team: We look for companies with a strong, committed management team with the vision, experience and desire to significantly increase the value of their enterprise. Ideally, the team will have a history of working together, and each member will be able to demonstrate a track record of success. Cadent expects management will adhere to the highest ethical standards.

• Alignment of management and investor interests: Cadent seeks to align management's interests with all shareholders by requiring management to be equity holders. Compensation is often augmented through generous profit-sharing and option plans.

• Exit Potential: The exit strategy for investments is clearly defined as part of the initial investment process. We work with the management team to identify multiple scenarios under which we might exit the investment after a four to seven year holding period. Typically our companies become acquisition targets or their assets can be monetized, but some may also have strong IPO or leverage recapitalization potential.

Cadent works proactively with its portfolio companies to build shareholder value in concert with management. For this reason we believe that the personal chemistry between us and the management team is just as important as other investment criteria.

If you are an entrepreneur or business owner looking for expansion capital, and your company fits the criteria above, we would like to hear from you. Please click here to submit a business plan and move the process forward.