Investment Strategy

Dauntless Capital Partners is a private investment group formed to make equity and other junior securities investments in the full or partial acquisition of small cap public companies or privately held companies. We invest our own capital and substantial operating management experience in underperforming companies with a focus on creating superior shareholder value.

Given current market conditions, we are keen to acquire underperforming companies with an established operating business, and depending upon circumstances, distressed operations. While we have a preference for investing in small cap public companies, we will also consider investing in privately held companies. Our geographic focus is Western US and Western Canada.

Our typical model when investing our capital is to become actively influential in both governance and management. We seek to acquire a position of board and management control without necessarily acquiring absolute stock control.

Private Equity

We seek to invest our capital and time in:

• Micro and small cap public companies
• Orphaned corporate divisions
• Middle market privately held companies.

In the public arena, we are interested in investing in companies with franchise value where we are able to acquire a position of influence and the ability to guide management and strategy. Our criterion includes companies with a market capitalization below tangible book value and a PE ratio that is less than comparable firms in that industry.

In such transactions Dauntless Capital Partners offers the company capital for restructuring an over-leveraged balance sheet or to take advantage of expansion/growth opportunities. To shareholders, we offer a chance to convert an illiquid investment into cash or to participate with us in the upside of our value creation activities.

In the case of orphaned divisions we represent an opportunity for a parent company to effect a quick and discrete disposition of a non-core asset.

Industry Preferences

We are seeking to invest in underperforming companies with revenues between $10 million and $200 million:

• Public companies preferred, or privately held
• Manufacturing businesses
• Consumer products suppliers
• Business services and niche service companies
• Value-added distribution businesses
• Niche retail businesses.

At this time, we are not seeking to invest in software, oil & gas or real estate based businesses, nor in startup or early stage emerging companies.

Our geographic focus is Western US and Western Canada.

Distressed Debt

Dauntless Capital Partners will also invest in non-performing and sub-performing financial assets as a means of acquiring troubled companies. We have a specific focus working with commercial banks in the area of workouts and distressed credits with a view towards acquisition of the underlying companies. We are also interested in becoming involved with potential clients of banks where further balance sheet and management support would position them as an attractive banking client for senior debt or asset based lending financing facilities.