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Auxo Management Supercharges Portfolio Company by Closing Strategic U.S. Investment
Auxo Management, Monday, November 07, 2016

Partnership Creates North American Video Surveillance Conglomerate
November 08, 2016, Toronto, ON – Auxo Management LP (“Auxo”), a privately-held investment firm led by Robert Cherun and Erik Mikkelsen, announced today that it has closed on an investment in Stealth Monitoring Inc. (“Stealth”). Stealth is a Dallas-based video surveillance business focused on designing, installing and providing pro-active remote video monitoring solutions to multi-family residential, commercial and industrial businesses across the United States.

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First Canadian Search Fund Liquidity Event
Auxo Management Completes Minority Recapitalization with New York Private Equity Fund
Market Wired, Friday, July 4, 2014

TORONTO, ONTARIO--(Marketwired - July 4, 2014) - Auxo Management LP ("Auxo"), a privately-held investment firm led by Robert Cherun and Erik Mikkelsen, announced today that it has completed a minority equity recapitalization of their portfolio company UCIT Online Security ("UCIT"), pronounced "you-see-it" (www.ucitonline.com).

 

In the recapitalization, Auxo has brought in Egis Capital Partners ("Egis"), a New York mid-market private equity fund led by Bill Polk and Robert Chefitz focused on late-stage growth investments in the Security & Homeland Defense sectors. Egis has invested in several security companies including Alarm.com, FreightWatch, and Westec.

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Auxo search fund snags first deal
The Globe and Mail, Thursday, April 14, 2011

Toronto-based search fund Auxo Management has tied the knot on its first relationship.

Unlike private equity funds that invest in companies and then manage or oversee them from afar, Auxo's managers Rob Cherun and Erik Mikkelsen set out last September in search of a company that they could get their hands dirty in.

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Toronto Entrepreneur Partners with Private Investment Firm
Auxo Management Closes First Deal with Investment in Canadian Profit 100 Company


April 12, 2011, Toronto, ON – Auxo Management LP (“Auxo”), a privately-held investment firm led by Robert Cherun and Erik Mikkelsen, announced today that it has closed on its first deal: an investment in UCIT Online Security (“UCIT”), pronounced “you-see-it” (www.ucitonline.com). UCIT is a Toronto-based security business focused on providing 24-hour live video monitoring as a more affordable and effective substitute or supplement to security guards. The company also sells and installs security equipment and provides security software through its fully-owned subsidiary Detexi (www.detexi.com).

 

UCIT was founded in 2003 by Sidney Sommer, a local Toronto raised man who was the recipient of BDC Ontario’s Young Entrepreneur award in 2008. Sidney launched the company out of his mother’s basement in 2003 and has since grown the business to over 50 employees. In 2009 UCIT was listed as #19 on the Canadian Profit 100 List of fastest growing companies. UCIT currently has offices in the Greater Toronto Area and Ottawa that service clients across North American and parts of Europe.
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Young investors on the takeover trail
The Globe and Mail, Tuesday, December 14, 2010
To play in Canada’s fractured private equity market, investors must go head-to-head with huge established funds for big businesses, or battle venture-capital players for small but promising startups. But there’s an untapped middle ground, one that a different breed of investment fund is designed to access. So-called “search funds” seek out flourishing, small-to-medium-sized enterprises that want to sell but can’t find buyers. And thanks to a growing wave of retirements by baby boomer entrepreneurs, the number of these firms is growing. These enterprises are too small to attract attention from big players like the Canada Pension Plan Investment Board, and too big to interest venture capitalists, but they can be attractive investments that boast reliable cash flow coupled with lower risk. “The level of risk, I think, is substantially reduced compared to the venture capital market” because the businesses are established, said Paul Rogers, a former president at CIBC World Markets in New York, who recently invested in one of the newest entrants in the search-fund market, Toronto-based Auxo Management. Auxo was started this year by Canadians Rob Cherun and Erik Mikkelsen.
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New search fund rolls dice in Canada
The Globe and Mail, Tuesday, December 14, 2010
Rob Cherun and Erik Mikkelsen were already living their dream, working in investment banking, management consulting and real estate private equity out of New York, Toronto and Los Angeles. But that wasn’t enough for Mr. Cherun, who enrolled in his MBA at Stanford’s Graduate School of Business in 2008. There he met professor Joel Peterson, founder of private equity firm Peterson Partners and current chairman of JetBlue Airways Corp. Mr. Cherun took Mr. Peterson’s class and prepared a report on the value of investing in Canada. The document was compelling, noting that Canada has the world’s second-largest oil reserves, large timber reserves, a strong dollar, and low debt-to-GDP. More important for private equity investors, he found that Canada has about a quarter of the money chasing smaller companies than in the U.S., on a per-capita basis.
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Young Entrepreneurs Return to Canada Backed by Top Tier Investors
Press Release, Friday, November 26, 2010
Toronto, ON – Auxo Management LP (“Auxo”), a privately-held investment firm led by Robert Cherun and Erik Mikkelsen, announced today that it has begun its search for acquisition targets. Auxo is an entrepreneurial firm, located in Toronto’s MaRS Discovery District, seeking to acquire and actively manage small to medium-sized businesses. They will make controlling investments in stable, profitable companies with annual revenues of $10 to $50 million and cash flows of $2 to $8 million. Following the acquisition, the partners will take an on-site, day-to-day leadership role within the companies to grow revenues and streamline operations.

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Economic outlook brightens for 2011, major banks say
Postmedia News, Wednesday December 15, 2010 
After slowing to a crawl, Canada’s economy is expected to get back on track in 2011 on expectations for sustained domestic growth and an improved outlook for the United States, according to reports Wednesday by two of Canada’s major banks. TD Economics boosted its growth forecast for the year ahead to 2.6 per cent from two per cent previously. RBC, meanwhile, maintained its 3.2 per cent outlook for 2011, but added that its outlook for this year — at 3.1 per cent — and next year marks the fastest pace of growth over the past four years.
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Think Canada (Again)
CVCA – Canada’s Venture Capital & Private Equity Association, October 2010
The Canadian economy is vibrant, has been outperforming the rest of the G7 and is ranked by the Economic Intelligence Unit as the #1 place to do business in the G7 for the next five years. KPMG surveys find Canada leading the G7 in low business costs, especially taxes. The World Economic Forum placed Canada at the top of the rankings for streamlining procedures to set up a business and #1 for the soundness of its banks since 2008. Canada is open for business! Canada’s educated workforce (ranked #1 in the OECD for college completion rates and #3 for the quality of its management schools), abundant natural resources, and easy access to major markets place it in an exceptionally competitive favorable position. The public policy environment is strongly supportive of innovation with Canada #2 in the G7 in the generosity of total R&D tax incentives. In addition to fiscal support, the Government has also provided support by acting as a catalyst to assist in the commercialization of innovation.
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Succession plans up in the air
CA Magazine, June-July 2010
Six in 10 private companies in Canada will change ownership structures within the next 10 years but very few (11%) have a succession plan in place, according to executive CAs responding to a CICA/RBC Business Monitor Survey. An additional 17% have at least started work on a succession plan but the large majority have done nothing more than discuss it.

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U.S. investment in Canada soaring
Financial Post, Tuesday, Feb. 16, 2010
U.S. investors continued to plow their money into Canadian bonds and stocks during December, putting another exclamation mark on a record-shattering year for foreign investment north of the border. U.S. purchases of Canadian equities netted US$1-billion in the last month of 2009, while net U.S. investment in Canadian bonds hit US$2.7-billion, according to figures from the monthly U.S. Treasury International Capital report, known as TIC.
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Bond King buys Canada
Financial Post, Tuesday, Jan. 26, 2010
Ottawa -- Count one of the world’s biggest and most influential mutual-fund managers as the latest market-mover to jump on Canada’s bandwagon.Bill Gross, founder and managing director of Pacific Investment Management Co., which manages US$1-trillion on behalf of clients, said in his monthly letter to clients that Canada stands out among industrialized countries as a destination for investors to park their fixed-income cash.
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The new business as usual – The Business Insights Survey of Canadian Companies 2010
PWC, 2010
The 2010 PwC Business Insights Survey of Canadian Private Companies reveals most of Canada’s private companies are ready to grow. They’ve learned their lessons from the recession, took the time to improve processes and bring cost structures down, and are setting a strategic path forward, one that is based on a model of continuous improvement, a deep and robust relationship with customers and a keen eye on the competition. While they have benefitted from Canada’s overall strength throughout the economic downturn, they are also fully aware of the implications a struggling US economy can have on the Canadian market.
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