INVESTMENT
STRATEGY

Investment Strategy

At N50VC, we primarily strive to find situations where microscopic, typically-family-run community banks that are in a position to sell and have the goal of either selling outright, or significantly recapitalizing their company as a means of disposition, or partnership, to grow from local, community-level institutions into larger, “locally regional” institutions that can then be sold to super-regional banks, which, when executed correctly, will yield an IRR of 25% or better over a 5 year time frame.

On the real estate side, we have now completed site plan approval on a what will likely be our last mid-sized development; a 299-condo/townhome/live-work project in downtown Barrie, Ontario, Canada.  We welcome inquiries from developers on this property as either outright purchasers of the site plan, or developers interested in a joint venture. At this time we are not involved in any real estate funds however when we are, they are primarily involved in the acquisition of apartment complexes or warehouses, with upside potential that undergo a process of regentrification, structural and aesthetic improvement, and a stabilization of rents before disposition.

In the area of venture capital, we strive to source situations that jump off the page at us. There is certainly a leap of faith involved in investing in companies that have only been in existence for a short while, however understanding the general idea that founders had when they began their trek and, further, appreciating the problem that these founders were hoping to solve when their idea was sparked, helps us make decisions that we feel will lead not only to groundbreaking technologies and solutions, but also to superior investment returns. But, again, it all begins by understanding what is going on in the heads of the people with whom we trust our investment capital.  Only then are we comfortable contributing to the ecosystem of people and ideas geared toward the future.

There is nothing hasty nor magical about the positions we take. There is no publicly-quoted price for the stock we own, and we are not worried what the greater investing public thinks about the value of our companies. We access prime situations, and examine possible investments from a trusted, close knit network of investment banks and other experienced connections, seeking only the most desirable situations to ultimately take a position in. Upon identifying a bank for acquisition, we strive to place, and/or ensure, that the most competent management and board of directors is at the helm, keeping careful watch over our investment for its duration.

Above all, I reiterate that none of our positions are publicly quoted. We are not prone to the value of our investments fluctuating as the public markets ebb and flow. And that’s how we like it, regardless of whether we exit a position with major success, or if we get kicked in the face as is bound to happen (especially in the venture capital arena) every now and again.