Private Equity

The private equity arm of the Midnight group is Tecate Northern Trust (the “Fund”). This unique Fund believes that private corporations drive the economy and are centers of innovation. The objective of the Fund is to make long-term equity investments in attractive private corporations and to build relationships with successful entrepreneurs.

The Fund generally operates through two stages: investigative and investment. In the investigative stage, the Fund first makes shorter-term investments by purchasing non-voting redeemable preferred shares to provide a low-risk opportunity for the Fund, the corporation and the other shareholders to evaluate whether a long-term equity investment by the Fund is desirable. Our unique two-stage investment method enables shareholders to realize some liquidity swiftly because the most onerous parts of the due diligence process are undertaken in the second stage of the transaction process.

The capital gains exemption was put in place to promote risk-taking and investments in private corporations. Entrepreneurs that have taken such risk may now wish to take advantage of this exemption by selling preferred shares to their corporations to the Fund for tax-free proceeds as part of the investigative step referred to above.

> Learn more about Tectate Northern Trust

Contact our specialists

  • specialist_person
    Jon Gilbert
    Executive Vice President
    Before joining Midnight, Jon was a lawyer who practiced in all areas of tax law, with an emphasis on corporate/trust tax planning and international tax planning. In addition, Jon has conducted tax litigation both in private practice and as a tax litigator with the Department of Justice (Canada), and has extensive experience managing the audit process and dealing with the Canada Revenue Agency.
  • specialist_person
    Ray Hupfer
    Director, Business Development
    Ray is a lawyer and Chartered Accountant. He has more than 30 years of experience in tax, mergers and acquisitions and estate planning. He is currently and has in the past served on the boards of charitable organizations, including the role of chair.
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