In order to fulfill its mandate, SaskWorks Venture Fund has developed a set of rigorous investment guidelines to guide its investments. Two primary categories are targeted for investment:
companies with strong balance sheets seeking capital for expansion, modernization of equipment, or upgrading of employee skills; and
companies with strong balance sheets that are facing an ownership transition because the owner is reaching retirement age with no succession plan.
SaskWorks Venture Fund also makes selected investments in early stage companies and in companies that are in turnaround mode, on an individual and limited basis.
Our investment policies focus on companies which possess as many as possible of the following characteristics:
an experienced management team;
robust market potential;
the likelihood of a sustainable competitive advantage;
track record of positive financial performance;
commitment to ethical employment practices;
commitment to workplace safety;
commitment to sound environmental practices;
employee participation in the firm's decision-making process;
the investment be of sufficient size to justify the Fund's continuous monitoring of it;
a reasonable expectation that the investment can be exited in 5-7 years, having regard to the nature of the business and the marketplace;
SaskWorks Venture Fund may invest up to a maximum of 10% of its asset base in any one company. The minimum is dependent on the nature of the investment, but is usually at least $500,000. SaskWorks Venture Fund targets both small and mid-sized companies.
To be considered eligible, companies must meet the following criteria:
more than 5 and less than 500 employees;
a minimum of 25% of salaries/wages paid in Saskatchewan.
Every company that has the potential for investment must go through SaskWorks Venture Fund's due diligence process. This process includes an inspection of the operations; an evaluation of the management team; an evaluation of past and anticipated financial performance; review of internal controls and accounting practices; and a review of the marketing and operational plans.