Next Edge CIA Disciplined Growth Portfolio · TSX:PCD.UN
Next Edge CIA Disciplined Growth Portfolio — Next Edge RCM Private Yield Fund — Investor Presentation (February 2019)
18 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, February 2019
Slide 1: Next Edge RCM Private Yield Fund
Next Edge RCM Private Yield Fund February 2019 1
Slide 2: Important Notes
Important Notes The ‘Next Edge RCM Private Yield Fund’or the ‘Fund’ means the ‘Next Edge RCM Private Yield Fund’. Capitalized terms not defined in this presentation are defined as set forth in the Offering Memorandum of the Fund (the ‘OM’). This communication is not, and under no circumstances is to
Slide 3: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following presentation may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Next Edge Capital Corp., the Credit Advisor or any affiliates thereof
Slide 4: Certain Risks of Investing In The Fund
Certain Risks of Investing In The Next Edge RCM Private Yield Fund There are risks associated with an inestment in the Fund, as a result of, among other considerations, the nature and operation of the Fund. An Investment in units should only be made after consulting qualified sources of investment a
Slide 5: Next Edge RCM Private Yield Fund
Next Edge RCM Private Yield Fund ●● The Next Edge RCM Private Yield Fund (the ‘Fund’) aims to achieve consistent net returns of 10%+ per annum by providing opportunistic financing via secure debt or debt-like instruments which are typically 6 - 36 months in Investment duration, but may be as long as
Slide 6: Executive Summary
Executive Summary Targeting net returns of 10%+ per annum from a portfolio of private debt investments ●● Generate total returns comprised primarily of interest income, with some equity appreciation on bonus shares ●● Deals sourced via in-house origination network Portfolio broadly diversified by ge
Slide 7: Introduction – R.C. Morris & Company Capital Management
Introduction – R.C. Morris & Company Capital Management R.C. Morris & Company Capital Management is a privately-owned fund management company based in Vancouver, British Columbia. Their focus is on investing in North American fixed income instruments through a variety of structures. ●● Opportunistic
Slide 8: Background
Background The capital management business grew out of our full-service turnaround and restructur- Turnarounds and Restructurings Planning and execution of interim management roles on behalf of investors and Boards Identifying and fixing specific issues and problems, forensic analysis, managing all
Slide 9: Background
Background The capital management business grew out of our full-service turnaround and restructur- In our turnaround business we deal exclusively with We provide: complex situations: ●● Fresh Perspective – seeing things differently ●● Operations – in disarray ●● Clear incentives - driven to navigate
Slide 10: The Fund - Investment Strategy
The Next Edge RCM Private Yield Fund- Investment Strategy The Fund aims to achieve net returns of 10%+ per annum by providing asset and cashflow-backed debt facilities to small and medium-sized enterprises ●● Companies unable to access traditional sources of capital because of: ►► Stage of Developme
Slide 11: The Fund - Preserving Capital
The Next Edge RCM Private Yield Fund- Preserving Capital We focus on maintaining safety of principal in the event that the investee does not achieve their goals Pre-Investment Analysis and Negotiations ●● Thorough due diligence and liquidation analyses on underlying assets and cashflows ●● Extensive
Slide 12: Past Performance - RC Morris Partnerships
Past Performance - RC Morris Partnerships R.C. Morris has built a track record of solid performance, providing partners attractive net returns Fund Inception Fund Size Status Fund I December 2011 $2.2 million Wound down Fund II May 2013 $8.4 million Wound down Fund III January 2016 $65 million (2) O
Slide 13: Performance - Fund
Performance - Next Edge RCM Private Yield Fund HISTORICAL PERFORMANCE1 Class A JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD2 2019 1.75% 0.83% -- -- -- -- -- -- -- -- -- -- 2.60%* 2018 0.70% 1.22% 0.54% 1.25% 0.81% 1.43% 1.58% 1.50% 1.45% 1.48% 0.93% 0.85% 14.65% 2017 -- -- -- -- -- -- -- -- -
Slide 14: Underlying Investments of the Fund
Underlying Investments of the Next Edge RCM Private Yield Fund1 as at December 31, 2018 Loan Investments Interest Rate Term Equity Participation Software and IT services 17.00% 48 months Warrants equal to 7% of loan exercisable at $0.05, with a 10 year expiry Warrants valued at 7x EBITDA for 10 year
Slide 15: Summary of Terms
Summary of Terms The Next Edge RCM Private Yield Fund Class A NEC 511 FundSERV Codes Class F NEC 513 Min. Initial $10,000; for Accredited Investors only Investment Min. Subsequent $10,000; for Accredited Investors only Investment Effective Management Fee Class A 2.50% (Includes Servicing Fee on Clas
Slide 16: Appendix
APPENDIX 16
Slide 17: Key team member biographies
Key team member biographies Christopher Morris, President Prior to founding R.C. Morris & Company in 2008, Christopher was CFO of MetroBridge Networks (TSX-V: MEB) a Vancouver-based wireless broadband company with operations in the United States and Canada. Before MetroBridge, he was the CEO of Tran
Slide 18: Key team member biographies
Key team member biographies Colin Haddock, Vice President - Finance Mr. Haddock spent three years working in public practice accounting (2010 – 2012), where he provided financial reporting, compliance, and corporate taxation services to predominantly private owner-managed businesses, publically list
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