About

A bespoke approach to investing

Our Mission

The Rosseau Group (“TRG”) is a privately held investment firm based in Southern Ontario.  TRG was created to invest private funds for the long-term – free of the limitations that accompany more rigid fund-based investment.

 

At the highest level, we invest in companies with excellent long-term earnings potential.  We provide our investment partners with secure, lucrative, transparent options amid a world of opportunities.  We provide managers with the resources, support, and expertise they need to grow their businesses.  We provide business owners with long-term succession plans that protect their legacies.

We typically seek to invest in companies with outstanding businesses, brands, management, and growth plans in place.  However, as serial entrepreneurs, we welcome the opportunity to invest in complicated or early-stage opportunities with outstanding potential.  We take pride in our ability to put together top-notch management teams.  Our entrepreneurial culture attracts like-minded colleagues and managers.  We provide a home for value investors and entrepreneurs at every level.  Under the right circumstances, we will even establish new companies – as was the case with Rosseau Development Corp, now our largest portfolio company.

Secure, lucrative & transparent investments

Business owners, investors, partners, and employees place a great deal of trust in us; it is our goal to earn that trust every day.

Our Perspective

Our team is comprised of entrepreneurs with experience in operations, asset management, and investment banking.  Our combined experience in multinational corporate entities and entrepreneurial ventures provides us with multiple perspectives from which to analyze investments.  Our entrepreneurial spirit opens the door to creative projects overlooked by more rigid firms.  Our institutional approach ensures that all investments exhibit appropriate risk-return ratios.

• ENTREPRENEURIAL SPIRIT

• INSTITUTIONAL APPROACH

Our Name

The Rosseau Group is a family company, founded by cousins Scott Moffat and John Mehlenbacher.  Scott and John don’t share a last name, but they do share a lake: Lake Rosseau.

 

Lakes are the epitome of Canadian culture.  Canada has more lakes than the rest of the world combined.  From urban skylines to mountainous glacial pools, we have enough freshwater shoreline for every guest and citizen to enjoy.  Lakes bring people together.  They represent peace of mind, history, stability, and – for lack of a perfect English word – ‘hygge’.

Scott and John have been enjoying Lake Rosseau together since the 1980s.  Scott’s family first settled in Muskoka in the early 1900s.  John grew up with Scott at his parents’ cottage on Lake Rosseau.  Today, their cottages – only two miles apart – are the central gathering spots for friends and family scattered across the continent.

 

When we founded our company, we wanted a name that represented the lakeside feeling we loved – to set a tone for the company that would bring us some of the same peace of mind we have enjoyed on the lake all these years.  Our firm was designed to bring people together and provide a permanent home for companies, properties, and people.  So, we named it after our most inspirational icon, our home, our favourite lake of all: Lake Rosseau.

Investment Strategy

At Rosseau, we leave the high-risk opportunities for others.  We seek lucrative opportunities with an appropriate margin of safety.  We look for companies with impressive long-term earning potential, including compelling growth opportunities.  Our investment structures vary, but all investments are crafted to provide secure, predictable returns that are less volatile than the alternatives.

We are not passive investors.  We do not invest in publicly traded companies over which we have no influence.  We are not ‘financial engineers’.  We do not search for companies we can lever to the extreme in order to earn an attractive, but risky, return.  We are active growth capital investors.  We function as the board of directors and business development teams of our portfolio companies. We furnish our companies with the legal, financial, and strategic support they require to grow.  Together with management and investment partners, we craft realistic long-term growth plans that never endanger the company’s viability along the way.

Our long-term perspective enables us to ride out storms, correct any issues we find, and see our growth initiatives through.  The illiquid nature of our investments is balanced by superior returns and favourable tax treatment.  In addition to providing bespoke tax structures for our partners, our long-term approach inherently obviates the need to reinvest capital regularly.  We do not exit investments because of calendar dates.  We exit when opportunity costs compel us to invest elsewhere.  When investments ‘mature’ and companies produce capital in excess of reinvestment requirements, that capital is returned to TRG for investment elsewhere.

Structure

TRG’s bespoke structure was designed to suit the needs of its founders.  Borrowing features of private wealth managers, private equity firms, and Berkshire Hathaway, TRG is essentially a multifamily office for our founders and key investors.  While our principals have holdings outside the firm, TRG manages most of our collective capital via investments in private companies (not securities or directly into real estate).  Each company’s ownership is a partnership with managers and sometimes other investors.  While we are open to minority stakes, to date TRG has only invested in control positions.

Typically, our portfolio companies have their own teams and function as standalone businesses, but they work hand-in-hand with TRG, relying on the latter for business development and other support.  Rosseau Development Corp (“RDC”), however, was built upon TRG’s real estate development investments and created to house that rapidly growing business.  As we carefully grow the team, RDC is managed by our founders and fully integrated with TRG.

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Our Founders

SCOTT K. MOFFAT

MD, MBA

Scott is a licensed physician, former investment banker, and founding partner of The Rosseau Group.

 

Scott oversees capital allocation, portfolio management, and business strategy for the parent company.  He serves as Chairman of Muskoka Springs and Rosseau Hospitality and sits on the board of Rosseau Development Corp.

 

A dual citizen of Canada and the United States, Scott has spent most of his life straddling the border. After attending Upper Canada College in Toronto, he pursued the rest of his education in New York – starting with Cornell and Columbia University’s College of Physicians and Surgeons.  After completing his medical training, Scott returned to Cornell to complete an MBA at Johnson.  Prior to founding TRG, Scott was with Citigroup’s Healthcare Investment Banking team where he advised clients across the healthcare spectrum in capital raising and Mergers & Acquisitions.

 

He is heavily involved with the alumni organizations of his alma maters, plays hockey four times per week, and spends as much time in Muskoka as possible.

JOHN C.
MEHLENBACHER

John is a Toronto native with over two decades of local real estate experience.  He is a founding partner of The Rosseau Group, Chairman of Rosseau Development Corp. (“RDC”), and a board member of several other companies.

 

Early in his career, John spearheaded sales for Concord Adex, developer of the largest master-planned communities in North America.  While at Concord, John co-founded a real estate investment syndicate that specialized in the acquisition of preconstruction condominiums.  John left Concord to focus full-time on the new venture that eventually grew into The Condo Store Group of Companies: an investment syndicate, a full-service brokerage, and the third largest developer sales firm in Toronto.

 

After a decade as Chief Operations Officer of The Condo Store, John transitioned to the development side of the industry, managing the investments that grew into Rosseau Development Corp.

 

John is a passionate supporter of several non-profit entities, sits on the board of West Lincoln Memorial Hospital, and spends as much time in Muskoka as possible.