Applying growth capital to boost profits and achieve scale
TCap initially invested in DIG in 2014, partnering with Tom Dolo. Tom had founded the investigation and security company a number of years earlier, leveraging his background as an RCMP officer in complex and high-risk undercover assignments.
He was looking for a partner to recapitalize his business and help with operations and administration. Essentially, he wanted the opportunity to focus on what he did best – sales and delivering the services – so the business could flourish. That’s exactly what happened with the Dolo / TCap partnership.
For the full years 2014 to 2016, DIG revenue increased by 80%, while keeping the existing gross margins and optimizing G&A. This led to a dramatic increase in profitability over those three years. The revenue jumped not only because Tom was freed up to lean in on sales, but also because he felt confident that the organization could now scale efficiently to handle the increased volume. In 2017, TCap helped to orchestrate a merger between DIG and Lions Gate Risk Management Group (LGRMG) to leverage the synergies between the investigation, security and risk management lines of business.
With a relatively smaller stake in the combined company, TCap stepped back from more active involvement but continued to assist with corporate functions. In 2018, TCap sold its stake to LGRMG management – with some of the admin staff moving across to LGRMG as they took those roles in-house. It was a win-win outcome for all parties, and LGRMG stands today as one of Canada’s leading risk management groups.