A Better Way
Merchant Opportunities Fund is a private specialty finance fund with a 10+ year track record of putting much-needed capital into the hands of Canadians underserved by the banking system while delivering consistent, attractive and highly diversified returns to our investors.
As of February 1, 2023
*Average Annualized Compound Return Net of Fees
Merchant Opportunities Fund
Merchant Opportunities Fund was founded to provide investors with what we see as the best of the private and public markets: returns typically only accessible to institutional investors through private investments, coupled with lower-volatility and greater liquidity options through flexible redemption rights.
Since 2010, we’ve invested in short-term, small to mid-sized business credit and consumer loans originated by well-established specialty finance companies that provide Canadian small businesses and individuals with the capital they need to be successful.
To date, our capital has contributed to the prosperity of more than 14,000 Canadians while generating attractive, risk adjusted returns for our investors. We have consistently outperformed industry benchmarks such as the S&P/TSX Composite Index, iShares Canadian Corporate Bond Index ETF, and iShares Core Canadian Universe Bond Index ETF for more than a decade. Our disciplined approach to risk management has been the cornerstone of our success through economic cycles, including the global pandemic.
In fact, we founded our business in the wake of the last major economic disruption and the years that followed were some of our best years in terms of investor returns to date. We expect the coming years will be no exception.
Standing Above the Rest
Our focus is on prudence, profitability and accountability. We have more than doubled in value over our 10 years in business by consistently compounding capital for our investors.
What’s driving the popularity of this asset class? Exponential global growth, attractive, uncorrelated returns, greater liquidity and diversification across industry, geography and customer segments.
How it Works
A portfolio-enhancing opportunity to earn above-market returns through access to highly-diversified portfolios of well-selected assets typically not available to individual investors.
Our focus on prudent and profitable growth has positioned our portfolio to succeed and outperform the market for more than a decade.
Investors in our fund benefit from more than 8 decades of collective, industry-leading specialty finance and risk management experience. We are uniquely qualified to assess, select and manage specialty finance portfolios for the long-haul.
Merchant Opportunities Fund targets a 10-12% return, net of all fees and expenses, while providing investors with quarterly distributions. The Fund has a 12-year track record of delivering superior risk-adjusted returns.
The Fund invests in diversified, high-yield portfolios, and it pays a quarterly cash distribution equal to 8% annually. The Fund is largely uncorrelated with traditional asset classes, offering an attractive yield with strong portfolio diversification benefits.
Personal investments may be made through tax-advantaged, Canadian registered plans such as RRSP, TFSA, RRIF, RESP and LIRA accounts. Corporations may also benefit from the pass-through of active business income from the Limited Partnership.
Given the short-term horizon of our investments, typically <12 months, and with most advances on daily or weekly repayment schedules, the Fund has generated consistent cash flow, which has allowed for monthly liquidity. The short-duration also allows the Fund to adjust lending rates to maintain returns in a rising rate environment.
With a stringent risk framework and replicable credit review process, the Fund effectively reviews portfolios and prices risk accurately, leading to attractive risk-adjusted returns. Strong collateralization combined with this effective risk pricing allows the fund to generate consistent results for investors.
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