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New Spark for SMEs
October 2009 - Spara Merchant Capital Corp. has launched a private-equity fund to invest in
growth companies too small to interest venture capitalists or other private-equity funds. The Oakville
Ont.-based investment bank's Spark Fund will invest $7 million to $10 million in its first year in 20%
to 50% stakes in firms with sales of less than $5 million but with explosive growth potential.
Companies can be located anywhere in Canada. The Clark family of Toronto is a limited partner
in the fund, and Andrew Clark, a former CEO, banker and investment banker, is its managing director.
Jason Sparaga, Spara's president and CEO, says the ideal deal size will be $750,000 to $1.25
million. He plans to add more partners and expand the fund to $40 million or $50 million by 2012.
~ Jim McElgunn - Profit Magazine New Briefs
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