img_74

Who We Are

The idea for The Shotgun Fund came from the reality that many times in shareholder disputes, there is one partner that has more financial resources than the other, which disadvantages the less financially able partner. Richard Reid saw this during his time as an investment manager and he realized that there was a significant opportunity if you could help level the playing field. From this, The Shotgun Fund was born in 1999 and since then, has been one of the first calls in Canada for Shotgun shareholder disputes. The Shotgun Fund has been featured on CNBC, BNN, The Globe and Mail, The National Post and many other publications both nationally and internationally.

What is Argosy

Argosy Partners is a private investment partnership. The firm was established in 1995 to provide advice to and invest in small and medium-sized owner managed businesses.

Over the years we learned that we could help owner managers realize their ambitions of building small family-oriented businesses into larger, more professional and successful businesses, where significant value can be created. Instead of charging big fees for doing this we opted for a partnership approach. We invested our own money alongside the owner manager, and steadily and deliberately built value together.

In 1999 we raised Shotgun Fund I, in 2006 we raised Succession Fund I. Since then we raised two additional Shotgun Funds and are currently raising Argosy Partners Investment Fund V.

Our mission is to invest with strong owner managers in promising small and medium sized businesses. We do this by buying the shares of departing or selling shareholders, and then we enter into a new partnership arrangement with the remaining owner(s), who work with us, not for us.

We like to think we share some important traits with the successful owner managers we partner with: we are as nimble and opportunistic as they are, our capital is right beside theirs, just as patient, or impatient as the case may be, to achieve objectives, just as demanding of results, and with a similar focus on growth and building value.

An “Alignment Agreement” keeps all of us focused right from the start on the shared objective of building a great business, beginning with the joint preparation of a strategic plan, where we prioritize and bring structure and discipline to capital plans and action items, and work together to build a team that will steadily increase value.

We have always taken pride in our ability to identify and bring on board industry expert directors that can work with all of us to develop a comprehensive strategy to identify growth opportunities, review and mitigate risks, better understand the competitive landscape, put in place and measure operational initiatives and productivity improvements, and eventually pursue a sale of the business.

The Shotgun Fund and The Succession Fund may address two different sets of circumstances, but our investment criteria and objectives are the same.

The Shotgun Fund enables owner managers to respond to a triggered shotgun clause with confidence and avoids the loss of the business.

The Succession Fund is an effective solution for owner managers wanting to find a new partner (other than a lender) to help grow the business and optimize opportunities.

We are mindful that each investment we make, each new partnership we enter into, is in a business that has a unique path to value creation. There are definite inflection points that have to be managed, and then built upon.  Once these are achieved, the challenge is ensuring the changes are sustainable. That’s how value is created. Working towards that end game has been our life’s work, just as it has been for our owner manager partners. It sure can be rewarding. Please call us for a conversation; it would be our pleasure to meet. We look forward to our next partnerships.

Richard Reid, Partner

Partner of Argosy Partners Ltd., has been involved in corporate finance and capital markets since getting his first job as a phone clerk on the floor of the TSE for Wood Gundy.

From that point Richard continued his investment career as follows:

  • Joined Burns Fry Ltd. as a stockbroker
  • In 1983 he approached Gordon Capital with an idea to invest their own money in small, private growth companies and was hired shortly after.
  • Richard raised $60M for the Canadian Mezzanine Fund (a collaboration between Gordon Capital and Helix Investments) and eventually took over management of the fund.

Richard left Gordon Capital in 1995 and formed Argosy Partners Ltd. to advise and invest in small and medium sized private businesses. Richard is a competitive sailor and is a founding member of the Toronto Area Hospice Regatta.

Larry Klar, Partner

Partner of Argosy Partners Ltd. and has been involved with the firm since 2006.

Larry’s career in corporate finance has been with three firms for long held positions:

  • Larry started his career in corporate finance in 1984 with KPMG and was involved in numerous mid-market acquisition, divestiture and corporate finance advisory assignments.
  • In 1992, Larry joined Canadian General Capital where he was responsible for generating successful returns by investing in management buyouts and growth capital financing opportunities.
  • In 2006 Larry joined Argosy Partners to help launch The Succession Fund and assist with The Shotgun Fund portfolio companies.

Larry is a Chartered Business Valuator and has completed The Directors Education Program at the University of Toronto’s Rotman School of Management and attained the ICD.D designation.

Larry spends his free time with his family and in the endless pursuit of being a better golfer.