Third Eye Capital

Toronto-based Third Eye Capital (TEC) was established in 2005 on the foundation of a basic idea: that many of the most promising businesses need a financial partner who believes in them, an alternative capital source that will help them surmount short-term obstacles as they transition, change — and ultimately succeed.

Third Eye Capital’s portfolio of companies benefit from resources, relationships and real-world experience. Arif Bhalwani and his team work hard for each individual company’s success, guiding each business past key milestones to greater profitability.

The Third Eye Capital team knows the challenges of financing a business. TEC’s expertise in value creation is applied from your point of view, and addresses the practical issues and obstacles faced by companies that are rich in potential, if not in traditional assets.

Third Eye Capital understands that small to midsize businesses frequently cannot be evaluated based on financial performance alone. A company’s most valuable assets often do not appear on the balance sheet. Looking beyond the numbers on a spreadsheet, TEC helps such ventures monetize hidden assets and realize untapped potential.

Third Eye Capital’s approach is reflective of important trends: Intangible assets have grown in importance throughout time, accounting for 5 percent in 1978 and now accounting for 80 percent of the total enterprise value of U.S. publicly-listed companies. Yet these assets are not recognized on financial statements and therefore overlooked by banks when determining a company’s future performance.

TEC has two types of clients: “Our investors entrust us with managing their capital and generating attractive returns; and our portfolio companies rely on us for capital and guidance to solve their business problems.” – Arif Bhalwani

TEC tailors its assistance to fit individual situations, taking the time to understand each business and its market sector. Rather than impose superfluous covenants, aggressive payment terms, or other default traps, the company provides the flexibility, agility and capital to enable companies to overcome obstacles and prevail in the marketplace.

Third Eye Capital’s approach to alternative capital is a response to market concentration of lenders in both the U.S. and Canada.

“Loans represent a smaller proportion of banks’ assets today than in any time during the 20th century … Higher regulatory capital requirements and lower net interest margins has made lending an unattractive high risk, low return proposition for banks. Therefore, companies that are undergoing change, distress, transition or other type of challenge, are considered to be too risky by banks and will have difficulty raising financing. Third Eye Capital specializes in financing companies that are in complex or unique situations and fall outside of the mandate of traditional lenders.” – Arif Bhalwani