The Chaos Group of Canada is comprised of active investors, focused on risk management, public & private equities, and private lending. We provide advisory services and capital required to accelerate the growth strategies of our partnership businesses. We do not charge a management fee in order to maximize the amount available for investment and to limit the J curve. Instead, an agreed upon performance fee is levied for the generation of positive returns IRR.
The Chaos Group of Canada uses a private equity waterfall model and our Limited Partnership Investors (LP) get the first 8% preferred interest. As a general partner (GP) The Chaos Group of Canada receives a 2% catch up fee and an 80/20 split carried interest.
We are all shareholders and our investment thesis is simple.
“Do not lose money and provide the highest rate of return on invested capital. The Alpha!”
LBOs | Capital Growth |Infrastructure
WE SCREEN FOR OPPORTUNITIES
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- Revenues of $1M to $10M
- At least $500K to 1M of Cash Flow
- In business at least five years, with a minimum of three years of prior financial statements
- Strong management team, either incumbent or previously identified as part of an acquisition
- Meaningful management ownership and appropriate incentives
WE ANALYZE THEM FOR RISK AND OPPORTUNITYWe screen for opportunities and then analyzing them for risks and the opportunity cost. Opportunity cost refers to the potential benefits that could have been gained from an alternative opportunity that was not pursued. This means that when evaluating potential opportunities, it is important to consider not only the potential benefits and risks of the opportunity itself, but also the benefits and risks of other opportunities that may have been foregone. By considering the opportunity cost, The Chaos Group of Canada can make more informed decisions about how to allocate their resources and pursue the opportunities that have the greatest potential for success.
This can help to ensure that resources are used in the most effective and efficient way possible, and that potential opportunities are not missed due to a narrow or limited focus. Ultimately, by taking a comprehensive approach to screening, risk analysis, and opportunity cost, The Chaos Group of Canada can maximize their chances of success and achieve their goals more effectively.
WE RESPOND & INVEST CAPITAL
Executives may need protection from workplace violence issues relating to layoffs, terminations or disgruntled employees. Corporate heads may need to travel to dangerous or unstable environments. No matter the situation, The Chaos Group of Canada has the solutions and experience to provide reliable protection for CEOs, Boards of Directors and other corporate leaders.
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- Combination of Subordinated Debt and Preferred Stock instruments
- Majority or minority equity investments
- Investment size of $3M to $15M, with larger commitments possible through co-investment with other funds or sponsors
- Board seat or observations rights
- Investment horizon of approximately 5 to 7 years
WE Optimize and MONITORING FOR PERFORMCE
We seek to add value to portfolio companies and private equity firms by leveraging our relationships, experience, data analytics, and research. More specifically, we have helped our portfolio companies and partner funds analyze and target strategic markets, understand reimbursement changes and trends, and navigate the transition from fee-for-service to value-based care.
WE REINVEST OR EXIT AND TAKE PROFITS
Using Protective Intelligence techniques, Executive Protection agents manage threats by avoiding and deterring them in order to keep clients as safe and secure as possible. The effective use of Protective Intelligence is one of the key aspects that differentiate The Chaos Group of Canada from its competition. We help you create security strategies and detailed plans that deter and reduce threats.