In today’s economic environment, it’s tough to find an investment vehicle with a track record like ours. Since 2010, we’ve generated consistent, risk-adjusted returns to our investors while contributing to the prosperity of thousands of Canadians coast-to-coast.
The Best of the Private and Public Markets
Now, more than ever, Canadian investors are struggling to find steady, predictable returns to fill the income role in their portfolios. Traditional sources of investment income are yielding minimal returns and market volatility is likely here to stay.
At the same time, many Canadian small businesses and consumers lack access to convenient and accessible financing options from traditional institutions because: loan sizes are too small to generate attention from lenders; application of traditional asset based underwriting standards disqualify many Canadian small businesses and consumers; outdated technology does not allow lenders to move quickly or efficiently; and traditional lenders have a low-risk appetite.
This gap in the market has given rise to the space known as specialty finance where innovative, niche finance companies are using new technology, platforms and non-traditional data sources to more effectively and efficiently serve businesses and consumers not adequately served by the banking industry.
In order to fund these loans, there is a need for pools of private capital that sit outside the banking system.
This is where we come in.
At Merchant Opportunities Fund, we leverage our intimate market knowledge and experience to select, assess and manage our growing portfolio. We do not rush to grow, and have positioned our fund to deliver a consistent, robust investment product for decades to come.
As of June, 30th 2023
*Average Annualized Compound Return
How It Works
Merchant Opportunities Fund invests in Specialty Finance portfolios, aiming to deliver superior risk-adjusted returns with a low correlation to traditional asset classes and a consistent income stream for investors.
Merchant Opportunities Fund pools money to deploy into a portfolio of assets with the purpose of generating a predictable, above average return.
Our capital is invested into a collection of well-selected, niche specialty finance portfolios of more than 6,000 short-term loans and advances that specifically address challenges for small business owners and consumers.
Each month when our highly diversified portfolios of well-selected customers repay their loans and advances, this generates predictable yield. We then return consistent quarterly distributions to our investors.
Proven Investment Strategies
Macro-economic factors that guide our strategic opportunities
Specialty financing is growing exponentially on a global scale.
- Private market-like returns
- Lower correlation with other asset classes
- Diversification across industry, geography and customer base
- Greater liquidity than most other private alternatives
Micro-economic factors that guide our strategic opportunities
*Our capital is invested into a collection of well-selected, niche specialty finance portfolios of short-term loans and advances.
Here’s what we look for in structuring our portfolio:
*Source: Statistica Alternative Lending Report 2020
Opportunity and Outperformance
Our award-winning Fund Managers and Directors bring invaluable expertise and unique market knowledge that can only come from what we’ve learned as operators pioneering Canada’s specialty finance market over the past decade. This experience coupled with our demonstrated track record as prudent portfolio managers means that we know exactly what to look for to continue to build and manage portfolios that produce consistent returns on capital.
Investment in our fund is highly diversified across our portfolio of more than 6,000 customers, which is further diversified across Canadian geographies and 100+ industries. We value patience and alignment and invest our money alongside our investors’ — we win when our investors win.
Thanks to our prudent investment philosophy, we are well-positioned to capitalize on post-pandemic opportunities in a less competitive market. Target investor return is 10-12% (net of all fees and expenses and our investment is RRSP, RRIF, RESP, LIRA, TFSA eligible.
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