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Bank of Montreal Increases Credit Facility to $40MM for Merchant Opportunities Fund

July 12, 2022, 07:00 AM
Filed Under: Industry News

The Merchant Opportunities Fund, a Vancouver-based private debt fund focused on investing in specialty finance portfolios, has increased its revolving debt facility with the Bank of Montreal ("BMO"). The facility now consists of a $27.5 million funding commitment with a two-year term along with a $12.5 million accordion.

The Merchant Opportunities Fund invests in proprietary specialty finance portfolios that in many cases consist of loans or advances that are originated, underwritten, and serviced by their primary originator, Merchant Growth. The BMO debt facility specifically provides funding for the Merchant Growth portfolio.

"As the economy continues emerging from the COVID-19 pandemic, the specialty finance industry is playing a critical role in supplying capital to businesses as they reboot and grow again. This facility with BMO gives us the debt capital to ensure that Merchant Growth continues leading this important charge, while also improving the financial performance of our funding vehicle, the Merchant Opportunities Fund," said David Gens, President & CEO of the Merchant Opportunities Fund and Merchant Growth.

"With the volatility in the public markets this year, Merchant Opportunities Fund has continued to deliver strong investment returns for our investors and has really shown the uncorrelated nature of the Fund with traditional asset classes. This BMO debt facility allows us to continue deploying capital in attractive opportunities for the Fund while also providing financing for many small businesses that rely on Merchant Growth to fund their business activities," said Colton Marentette, VP Capital Markets with Merchant Opportunities Fund.

Through the fund's twelve-year track record of prudence and profitability, the Merchant Opportunities Fund has helped its investors generate attractive and consistent returns while also contributing to the prosperity of more than 14,000 businesses and individuals. Since its inception in 2010, the Fund has generated a compound annual return net of all fees of 9% for its investors.

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