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Canada’s Bridging Finance Launches ABL Fund

October 17, 2013, 07:19 AM
Filed Under: Industry News

Toronto-based Bridging Finance Inc. announced the launch of Bridging Credit Fund LP (the "Fund"). The Fund will give Canadian investors access to a highly specialized asset class with a focus on aiming to deliver predictable yield over the long term.  The Fund will invest in an actively managed portfolio of asset-based loans that have good quality collateral, factored accounts receivable and inventory financing, primarily to Canadian and U.S. based companies.  The portfolio of the Fund will include only asset-based loans that are fully collateralized based on liquidation values and/or potential cash flows.

The president of Bridging, Natasha Sharpe, has an extensive background in credit, risk assessment and corporate finance with leading Canadian financial institutions.  "The Canadian landscape is a difficult one when searching out above average yield" said Natasha Sharpe. "We saw an opportunity to tap into an underserved market in the Canadian business borrowing space and pass along those opportunities to investors," she added.

The Fund is targeting an initial minimum yield of 6.5% per annum and incorporates several key features:

  • Target Minimum Yield Risk Protection:  If the Target Minimum Yield is not met, Bridging will waive its portion of the management fee to meet the Target Minimum Yield.
  • Floating Target Minimum Yield: The Target Minimum Yield is a floating target that is adjusted once per year to reflect changes in the Prime Rate.
  • Low Correlation: Low correlation to traditional asset classes and public markets.

The Fund will be offered across Canada through investment dealers pursuant to its offering memorandum via FundSERV.

Bridging is a privately held Canadian company with close to two years of private investment management experience providing middle-market Canadian companies with alternatives to the financing options offered by traditional lenders. Lending proceeds are used by companies to address short-term needs such as restructuring existing debt, providing working finance for growth, supporting inventory purchases and financing expenditures and acquisitions/buyouts.

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