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Alignvest Management Corporation Completes Investment in Avid Apparel – GlobeNewswire

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TORONTO, Aug. 30, 2021 (GLOBE NEWSWIRE) — Avid Apparel, now a division of The Avid Group (“Avid”) is pleased to announce that it has secured an investment from Alignvest Management Corporation (“Alignvest”), in partnership with EGADS Group (“EGADS”).

Avid, headquartered in Toronto, was founded in 2008 by Jesse Guth in his Dalhousie University college dorm room to fill the creative void in the collegiate apparel industry. Since then, the company has evolved into a leading vertically integrated provider of apparel-related services, including design, branding, printing, embroidery, fulfilment, marketing, and e-commerce. Today, Avid serves a wide number of customers across the collegiate, corporate, brand, and influencer market segments.

“Alignvest’s team and its investment partners have extensive relationships and unique business-building expertise, both of which will undoubtedly help scale Avid to the next level,” said Jesse Guth, founder of Avid. “I am thrilled at this new partnership and look forward to working closely with Alignvest’s team as Avid embarks on this exciting new chapter.”

Alignvest completed this investment in partnership with EGADS, led by Gilbert Palter, who will be the Chair of Avid’s Board of Directors during this next phase of growth. Mr. Palter was previously co-founder of Edgestone Capital Partners, one of Canada’s leading mid-market private equity firms. Alignvest also invited a select group of value-added investment partners to participate in the transaction. This group includes corporate CEOs, tenured private equity investors, and other experienced businesspersons all with extensive experience in the media and technology sectors and all of whom have committed to help Avid realize its full potential.

“After working extensively with Jesse, it became clear to us that an investment in Avid fit perfectly with Alignvest’s broader mandate,” said Reza Satchu, Managing Partner of Alignvest. “We are partnering with an ambitious entrepreneur who can leverage our relationships and our expertise in building businesses to substantially accelerate Avid’s growth. The company benefits from a highly attractive business model, has long-standing relationships with a diverse customer base to which it delivers tremendous value, and is uniquely positioned to capitalize on the rapidly growing social media influencer market. We are incredibly excited to partner with Jesse and his team and look forward to helping him build Avid into a world-class business.”

Terms of the transaction were not disclosed.

About The Avid Group
Avid Apparel was founded over a decade ago in a dorm room at Dalhousie University with an idea: to make better quality custom clothing. Several years and millions of prints later, Avid’s growing team still maintains the same mantra “great people making great clothing”. Today the Toronto-headquartered company is a leading vertically integrated provider of apparel-related services, including design, branding, printing, embroidery, fulfilment, marketing, and e-commerce and serves a wide number of customers across the collegiate, corporate, brand, and influencer market segments. For more information, please visit: www.avidapparel.ca.

About Alignvest Management Corporation
Alignvest is a Toronto-based private investment company focused on long term value creation. Alignvest seeks to invest in businesses that possess sustainable competitive advantages, are led by highly capable management teams that have track records of value creation, have demonstrated resiliency through economic cycles, and have highly scalable business models that generate attractive returns on invested capital. Since its founding, Alignvest has invested in numerous businesses across industries that include telecom, real estate, manufacturing, insurance, healthcare, and asset management. For more information, please visit: www.alignvest.com.

About EGADS Group
EGADS Group is a family office investing in private and public companies and taking an active board role adding value in such areas as culture, strategy, operational excellence, acquisitions and financings, and compensation.

Jonathan Finkelstein
Alignvest Management Corporation
First Canadian Place, 100 King Street West
70th Floor, Toronto, Ontario  M5X 1C7
Tel: (416) 775-1965  
Email: JFinkelstein@alignvest.com

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U.S. equity portfolio manager explains seven-step investment process – Wealth Professional

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The third step is identifying growth drivers. Sanders carries with him words from an old mentor – ‘always understand what drives top-line revenue’. For example, when Sanders first invested in Amazon back in 2003, when it was $17 a share, online penetration of retail sales in the U.S. was only 3%, but he believed that number was going to grow substantially over time. He met with Jeff Bezos who explained his competitive advantages – widest selection, lowest prices and convenience – completed his analysis and bought the stock. Sanders said: “That’s an example of a company that had a clear growth driver – penetration of its end market with offline retail going online.”

The fourth step is a financial statement analysis, getting into the nitty gritty of the balance sheets from a cash-flow perspective, while the fifth step is a management team assessment. Sanders is not interested in a company’s latest shiny product but instead wants to understand the key assumptions that go into his team’s investment process. ESG factors are also analysed at this stage, including how the board is made up and the compensation model.

Step six is critical and involves Sanders laying out four scenarios – best case, base case, bear, and worst, which are all five-year minimum discounted cash-flow models. The base case is what he thinks the stock is worth today, an estimate of cents on the dollar or intrinsic value. If Sanders believes a stock is worth $100 and it’s trading at $70, it’s 70 cents. He said: “We have this list of companies we’re following, and it’s ranked by cents on the dollar every morning. When stocks get to 70 cents, we recheck the analysis and we buy, and when stocks get up to 100 cents, we sell. That, in a nutshell, is our process.”

Every quarter these values are updated, in step seven, so it’s a moving target, underpinned by deep fundamental research that involves a 10-person team looking at one stock at a time before presenting it the team for debate.

While many investors focus on what is happening that quarter, Sanders told WP he thinks longer term, an approach illustrated by the crash of March 2020. He saw a health crisis, not an issue with the consumer, who ultimately drives the economy. Now in his third market cycle of managing money, the portfolio manager recognized that many elements were actually in good health, from millennials with no mortgages, a housing market at steady levels in the U.S. as it continued its recovery from the 2008 Global Financial Crisis, and a banking system that was doing well after 10 years of Federal Reserve stress tests.

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Surge Closes Investment into Contractor Connect – Business Wire

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DALLAS–(BUSINESS WIRE)–Surge Private Equity LLC (“Surge”) announces investment into its 10th platform, Contractor Connect LLC (“CC” or “Company”), a B2B networking lead-generation platform within the home improvement and remodeling space. The transaction closed with debt financing provided by Modern Bank and Assurance Mezzanine Fund with BakerHostetler acting as lead counsel.

Since its founding in 2014, CC has connected hundreds of thousands of homeowners to local contractors through its proprietary lead aggregator, screening, and live-transfer platform. The Company primarily specializes in various home remodeling verticals including bathrooms, windows, roofs, gutters, and sidings. Its recognized brand is highly regarded across the 25+ states it currently serves. Founder Joseph Powless will remain on as both an owner and partner of the Company.

“COVID has accelerated work from home hybrid and full-time trends. People are now spending more time at home, increasing the demand for home improvement,” said Surge Founding Partner Thomas Beauchamp. “This sustained macro demand for the industry paired with our plan to launch into new verticals such as HVAC and solar give us a clear pathway to sustaining the historical 25% annual growth rate.”

About Surge Private Equity

Surge Private Equity is a Dallas-based private equity firm that seeks majority investments in growing businesses with $2-7.5MM of EBITDA. Together with its lending partners, Surge provides entrepreneurs with liquidity and investors with higher yields and greater accessibility through lower investment minimums. Surge primarily invests in companies where the seller will remain in an ongoing capacity.

About Modern Bank

Modern Bank, N.A. is a privately owned, entrepreneurial bank that provides flexible, competitive, and reliable senior debt financing solutions to commercial companies. Its experienced bankers specialize in working with lower middle-market companies and owners to provide low-cost cash flow-based financing solutions.

About Assurance Mezzanine Fund

Assurance Mezzanine Fund is a private investment firm providing $3 to $20 million customized growth capital solutions to profitable, lower-middle-market companies nationwide. We look to invest our funds in established companies operated by experienced and proven management teams with a history of building enterprise value.

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Have a large amount of cash to invest? Here's how deploying it all at once compares with doing so over time – CNBC

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Valeriy_G | iStock | Getty Images

If you have a big wad of cash to invest, you may wonder whether you should put all of it to work immediately or spread out over time.

Regardless of what the markets are doing, you’re more likely to end up with a higher balance down the road by making a lump-sum investment instead of deploying the money at set intervals (known as dollar-cost averaging), a study from Northwestern Mutual Wealth Management shows.

That outperformance holds true regardless of the mix of stocks and bonds you invest in.

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“If you look at the probability that you’ll end up with a higher cumulative value, the study shows it’s overwhelmingly when you use a lump-sum investment [approach] versus dollar-cost averaging,” said Matt Stucky, senior portfolio manager of equities at Northwestern Mutual Wealth Management.

The study looked at rolling 10-year returns on $1 million starting in 1950, comparing results between an immediate lump-sum investment and dollar-cost averaging (which, in the study, assumes that $1 million is invested evenly over 12 months and then held for the remaining nine years).

Assuming a 100% stock portfolio, the return on lump-sum investing outperformed dollar-cost averaging 75% of the time, the study shows. For a portfolio composed of 60% stocks and 40% bonds, the outperformance rate was 80%. And a 100% fixed income portfolio outperformed dollar-cost averaging 90% of the time.

The average outperformance of lump-sum investing for the all-equity portfolio was 15.23%. For a 60-40 allocation, it was 10.68%, and for 100% fixed income, 4.3%.

Even when markets are hitting new highs, the data suggests that a better outcome down the road still means putting your money to work all at once, Stucky said. And, compared with investing the lump sum, choosing dollar-cost averaging instead can resemble market timing no matter how the markets are performing.

“There are a lot of other periods in history when the market has felt high,” Stucky said. “But market-timing is a very challenging strategy to implement successfully, whether by retail investors or professional investors.”

However, he said, dollar-cost averaging is not a bad strategy — generally speaking, 401(k) plan account holders are doing just that through their paycheck contributions throughout the year.

Additionally, before putting all your money in, say, stocks, all at once, you may want to be familiar with your risk tolerance. That’s basically a combination of how well you can sleep at night during periods of market volatility and how long until you need the money. Your portfolio construction — i.e., its mix of stocks and bonds — should reflect that risk tolerance, regardless of when you put your money to work.

“From our perspective, we’re looking at 10-year time horizons in the study … and market volatility during that time is going to be a constant, especially with a 100% equity portfolio,” Stucky said. “It’s better if we have expectations going into a strategy than afterwards discover our risk tolerance is very different.”

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