Current investments
High Fidelity HDTV Inc.
"We have tremendous confidence in the High Fidelity management team, which previously helped launch such well-known brands as TSN and Discovery Channel. The business has strong recurring cash flow based on a growing base of subscribers, and tremendous upside potential as its content can be sold and re-sold at no incremental cost. This is a niche asset that may be attractive to any number of specialty channel providers."
High Fidelity creates specialty television channels in digital high-definition format and distributes its programming through major cable and satellite companies such as Bell TV, Shaw Direct, Rogers Cable, SaskTel, Canadian Cable Systems Alliance and Eastlink, amongst others. High Fidelity currently has four HD channels on-air – Rush HD, Oasis HD, Equator HD and Treasure HD – and additional licence approvals from the CRTC for further expansion.
ASSET CLASS: Industrials
OVERVIEW: Direct investment of $5.5 million in High Fidelity, Canada’s leading 24/7 provider of high-definition channels to satellite and cable providers.
RATIONALE: Growth capital investment in a company with recurring cash flows, a favourable business model that can generate significant additional cash flow at minimal cost, and a strong management team.