Investment Approach

Efficiency
Growth
System
Incentives
Partnership Example #2

Ontario Drive and Gear

Manufacturing

The world’s leading manufacturer of amphibious all-terrain utility vehicles. In addition, the Company manufactures critical gears, couplings and related transmission components for large OEM’s in a wide variety of non-automotive industrial applications, including material handling, forestry, heavy construction and agriculture equipment.

Growth

Grew revenue by approximately 75% Invested in new product development Expanded sales and developed commercial division Revamped US sales and marketing effort improving sales force effectiveness Grew headcount

Efficiency

Improved Inventory turns by 20%Shortened A/R Days

System

Developed weekly and monthly reporting on key performance indicatorsRefined financial reporting outputs

Incentives

Management team members (non-owners) earned substantial ownership in NewCo that was realized upon sale

Disclaimer: Information about Ontario Drive & Gear Limited, Mitchell’s Oilfield Services, Inc., and Wholesale Produce Supply, LLC is provided solely to illustrate Stone Arch Capital’s investment approach, which involves fundamental asset analysis and active asset ownership. It should not be assumed that investments made in the future will be comparable in quality or performance to Ontario Drive & Gear Limited, Mitchell’s Oilfield Services, Inc., or Wholesale Produce Supply, LLC. Stone Arch Capital’s past investment experience is not intended to be indicative of the future results of any Stone Arch Capital fund. Past performance is not a guarantee of future results. There can be no assurance that investors in a Stone Arch Capital fund will not lose any of their invested capital. For a representative list of current and past investments of Stone Arch Capital, please refer to the “Companies” section.

We strive to treat business owners, management teams, employees, deal sources, advisors and investors with respect, honesty, integrity and transparency at all times.
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