Filogix, a leading supplier of software solutions to Canada's real estate and mortgage-related industries, had ambitious growth plans. When its initial investors sought to divest before these plans were realized, Filogix' senior management team asked Monitor Clipper Partners to step in and provide the capital and support needed to achieve its goals. The senior management team selected MCP because of the strategic thinking we brought to the table and our openness to invest in their ideas. MCP recognized that Filogix was initially a capital intensive business, but with the potential to generate very strong profits after 12 to 18 months.
MCP recognized the importance of letting the Filogix team continue to run the company. Whether bringing good news or bad to us, management had the confidence that MCP would deal in the same way – by analyzing the situation and helping them decide what to do next.
Within two years of Monitor Clipper Partners' investment, Filogix core earnings more than doubled, drawing the attention of several strategic buyers. Given the formidable valuations proposed by these parties, Monitor Clipper Partners and Filogix management agreed to sell Filogix, achieving annual equity returns of over 85 percent during MCP's ownership period.