Fengate Private Equity Overview

FENGATE PRIVATE EQUITY

A Differentiated Platform

Supporting the Growth Ambitions of Entrepreneurs with Transformative Capital.

The Fengate advantage

Fengate is a leading alternative investment manager focused on infrastructure, private equity, and real estate strategies. With offices and team members across Canada and the United States, Fengate has established itself as a leading North American investor and developer, with a strong track record of success.

The firm has been recognized as one of “Canada’s Best Managed Companies” since 2007. Fengate was certified as a Great Place to Work® for 2022, and it was named one of Canada’s Best Workplaces™ and recognized as a Best Workplace™ in Ontario; the Financial Services & Insurance; for Inclusion; Women; Professional Development; and Today’s Youth.

Highlights

175+ Executed Transactions

$7.0 billion

Total Equity Commitments

$35+ billion Total Asset Value

190+ Professionals

FENGATE PRIVATE EQUITY

Our background

Our private equity team was launched in 2016 to meet demand by North American entrepreneurs for growth capital to support the evolution of their businesses. We are a dedicated team of 19+ professionals with significant multi-asset experience, a quickly expanding and successful track record, and access to our accomplished Advisors, Anthony Sobel and Lindsay Sparks, as well as Fengate’s 45+ years of network and relationships.

Our focus

Our focus is on providing growth capital to support the ambitions of proven North American entrepreneurs and operators. We seek partnership opportunities in the middle market across the business services, healthcare, and information technology industries.

Our values

Every partnership is unique; however, all strong partnerships share common characteristics including being communicative, accessible, adaptable, and supportive. Establishing strong entrepreneurial partnerships is top priority as it allows all of our resources to be focused on driving the intended outcomes. We believe strong partnerships are rooted in the following core values:

TRUST TRANSPARENCY ALIGNMENT AGILITY

Our commitment to ESG

We work closely with our operating partners and advisors to identify, assess, and address material ESG factors in a manner consistent with our approach to material risk assessment, identified through our investment screening, diligence, and management activities.

Our approach

We seek to identify scalable business platforms led by high-quality entrepreneurs and management teams in the expansionary stage of their business. Developed to accelerate the growth trajectory of our partners, our Transformative Capital investment approach is to work closely with ambitious operators, providing them with the necessary capital, resources and strategic guidance to elevate and cause a long and lasting positive change in their business. We define Transformative Capital as the intersection of:

Financial capital

We develop a bespoke solution tailored to the growth and corresponding capital needs of each specific business.

Human capital

We employ an operator-centric portfolio management model and are hands-on investors that are highly engaged in our portfolio companies beyond monthly reports and quarterly board meetings.

Strategic capital

We leverage the breadth and depth of the Fengate Asset Management platform to provide unique market access, strategic relationships, and origination opportunities to help drive business transformation.

Our partnerships

Entrepreneurship is a scarce resource. We recognize the challenges that entrepreneurs face in driving growth, and the tenacity and agility required to capitalize on growth opportunities. Our operator-centric partnership approach, combined with our Fengate playbook, provides the foresight and adaptability to support our entrepreneurial partners navigate the challenges and opportunities presented by growth.

$2.1 billion in realized value created

33.3% average revenue CAGR*

26.5% average EBITDA CAGR*

* for current growth portfolio holdings

3.0X+ MOIC on realized investments to date

45.3% gross IRR to date

$800M assets under management

Our strategy

PROACTIVELY IDENTIFY SECTORS OF INTEREST

Proactively identify growth sectors of interest consistent with our target investment profile.

Evaluate attractive sectors based on growth potential and drive, secular tailwinds, unit economics, competitive landscape, and regulatory environment.

Develop preliminary sector thesis.

NETWORK MINING AND KNOWLEDGE EXPANSION

Leverage both our external and broader Fengate network to establish relationships with leading business platforms and entrepreneurs.

A strong network helps us refine our industry thesis, enhance industry knowledge, and develop strong relationships with potential partners in advance of a transaction opportunity.

PARTNERSHIP FORMATION

Seek industry leading entrepreneurs with a clearly articulated strategy and vision to grow.

Partner with scalable business platforms or industry leaders to invest in or build a business that benefits from both organic and inorganic growth opportunities, an attractive value proposition, and compelling unit economics.

In collaboration with our entrepreneurial partners, develop a clear investment thesis and road map for success rooted in a strong alignment of interest.

GROWTH REALIZATION

Drive accretive growth through our Transformative Capital investment approach.

Leverage our Fengate Playbook, resource and advisor networks, to invest ahead of growth opportunities assuming an active but supportive role in our portfolio investments.

Support our entrepreneurs to build nimble, yet resilient enterprises, with the objective of maximizing value for all stakeholders.

Our partnership criteria

We look to partner with strong entrepreneurs and operators of companies in the expansionary stage of their evolution, who have a proven track record and share our vision for growth. We invest both in a minority and majority capacity. Below are some of our criteria:

$25M-$100M investment size per portfolio

>$30M in enterprise value

Sectors of Interest

• Healthcare

• Information Technology

• Business Services

Capital Uses

Organic Growth Opportunities: corporate projects, geographic expansion, market expansion and platform expansion

M&A: funding large scale and bolt-on acquisition opportunities

Capital Solutions

• Common equity

• Preferred equity

• Structured equity

Liquidity Solutions: funding governance changes, ownership transitions and recapitalizations

The Fengate Private Equity team

Alexander Aversa Analyst, Investments

Alexander Chang Senior Associate, Investments

David Luder Vice President, Investments

Lawrence Tjan Principal, Value Creation and Operations

Deian Kutev Principal, Investments

Darryl Sam Principal, Investments and Origination

Richard Armstrong Associate, Origination

Thomas Charnock Principal, Investments

Justin Catalano Managing Director, Group Head of Private Equity

Martin Yiu Associate, Investments

Kristen Floro Senior Associate, Origination

Joel Caruso Associate, Strategic Operations, Private Equity

Michael Lising Senior Associate, Investments

Inflector Environmental Services is one of Canada’s leading environmental services providers focused on missioncritical, hazardous material abatement and remediation with a specialization in asbestos and lead abatement. It also provides mould, soil, and site remediation, selective demolition, and emergency response services to blue chip customers across a variety of industries. With more than 500 employees in five offices across Canada, Inflector has one of the largest dedicated labour forces coast-to-coast.

GRACE MED

Founded in 2019, GraceMed has become a recognized leader in the fields of plastic and cosmetic surgery, dermatology, and medical aesthetics in Canada. GraceMed features an experienced team of world-class practitioners who provide clients with a comprehensive range of aesthetic procedures, medicalgrade skincare, and cosmetic surgeries while utilizing the latest medical technology and techniques. As a best-in-class, physician-led platform, GraceMed has become a partner of choice for operators across Canada’s fragmented cosmetic surgery and medical spa industries, and has quickly grown its clinic network of top-ranked locations across the GTA and southwestern Ontario.

York1 is a leading provider of environmental and infrastructure services in Ontario. The company has provided excavation, demolition, shoring, environmental remediation, contaminated soil treatment and transfer, and waste collection and transfer services to some of the largest infrastructure, commercial, and residential projects in the Greater Toronto Area, including Rogers Centre, Scotiabank Arena, Scotia Plaza, Metro Toronto Convention Centre, Roy Thomson Hall, St. Joseph’s Hospital, Eaton Centre, and CN Tower, among others.

eStruxture DATA CENTERS

eStruxture provides network and cloudneutral data center solutions designed with the capacity, performance and flexibility to run modern, demanding enterprise applications, and the control to rapidly scale in response to unpredictable changes in business processes. Headquartered in Montreal and with additional data centres in Calgary and Vancouver, the company provides access to an ecosystem of more than 900 business clients, located across more than 30 countries, that trust and depend on eStruxture’s infrastructure and radical customer support, including carriers, cloud providers, media content, financial services and enterprise customers. eStruxture offers colocation, private cloud, managed services, bandwidth and security and support services to customers.

theScore MEDIA AND GAMING INC.

Score Media and Gaming Inc. (TSX Venture: SCR) creates highly engaging digital products and content that empower sports fans. Its flagship mobile app theScore is one of the most popular multi-sport news and data apps in North America, serving millions of fans monthly. theScore also creates innovative digital sports experiences through its web, social and esports platforms, and, in September 2019, they successfully launched a mobile sportsbook in the United States.

NRStor C&I L.P.

Established in late 2016, NRStor C&I L.P. is a turn-key energy-as-a-service provider to commercial, industrial and institutional customers as well as utilities across North America. With energy storage being a focal point of its offering, NRStor C&I provides its services under a turn-key build, own and operate business model where no-capital outlay or operational expertise is required from the customer. NRStor C&I offers standalone, renewable coupled energy storage systems, as well as microgrids which are centrally managed through its state-ofthe-art operational platform. Fengate purchased an interest in Q4 2018 of NRStor C&I, a former subsidiary of NRStor Inc. After rapidly delivering upon its growth strategy and becoming the largest behind-themeter energy storage provider in Ontario, NRStor C&I was poised to deliver on a major expansion into the US. This provided a catalyst for exit to a leading international private equity firm, who was ideally suited to support NRStor C&I’s expansion into the US. Existing investors sold their interest in the business during Q1 2020.

*All values presented in this brochure are in Canadian dollars.

“Fengate” refers to the Fengate group of companies which is comprised of Fengate Capital Management Ltd., its affiliated entities and the funds or other investment vehicles that they manage. Fengate has produced this information brochure (the “brochure”) for informational purposes only. The information contained in the brochure (the “Information”) is believed to be accurate at the time of publication of the brochure; however, Fengate does not guarantee or warrant or make any representations concerning the quality, suitability, accuracy completeness or timeliness of the information contained in the brochure.

This brochure and the information contained within it does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. In no event will Fengate be liable to any party for any claim or any direct, indirect, exemplary, incidental, punitive, special or other consequential damages arising out of information available in the brochure. Fengate is a trade name of Fengate Corporation. All other trade names, trademarks, service marks or logos found in this brochure are owned by their respective owners.

© 2023 Serafini Holdings Corporation. All rights reserved.

Designed and produced by Fengate. 2023.02.23