Next Edge CIA Disciplined Growth Portfolio · TSX:PCD.UN
Next Edge CIA Disciplined Growth Portfolio — Next Edge Private Debt Fund — Investor Presentation (May 2021)
33 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, May 2021
Slide 1: Next Edge Private Debt Fund
Next Edge Private Debt Fund May 2021 1
Slide 2: Important Notes
Important Notes The ‘Next Edge Private Debt Fund’or the ‘Fund’ means the ‘Next Edge Private Debt 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 be constr
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: Risks of Investing In The Fund
Risks of Investing In The Fund Please see the Fund’s OM for a complete listing and description of the risks associated with an investment in the Fund. Risks Associated With An Investment In The Partnership General Investment Risk; No Guaranteed Return; Limited Operating History; Class Risk; No Advic
Slide 5: Investors and Borrowers
We are an alternative investment fund manager providing leading-edge solutions for investors. For almost two decades our experienced team has launched numerous investment solutions in a variety of product structures. The people and approaches we discover may not be well known, but we believe they pr
Slide 6: Next Edge Capital Corp.
Next Edge Capital Corp. Formed in July 2006 as Man Investments Canada Corp. and spun out via a management buyout in June 2014 and renamed to Next Edge Capital Corp. Registered as an Exempt Market Dealer, Portfolio Manager and Investment Fund Manager.* Management team responsible for raising over CDN
Slide 7: Private Lending: The Opportunity
Private Lending: The Opportunity Private Lending: An Attractive Fixed Income Solution ● Interest Rates are low, however many investors require higher yielding investments without assuming unnecessary risk. What is Private Lending? ● Private Lending can be broadly defined as privately negotiated loan
Slide 8: Private Lending: Rapidly Growing Asset Class
Private Lending: The Opportunity Rapidly Growing Asset Class Non-bank intermediaries such as private debt, private equity and hedge fund firms have been making up a greater share of global financial assets since the financial crisis. Source: Financial Stability Board’s Global Shadow Banking Monitori
Slide 9: Broadly Adopted by Institutional Investors
Private Lending: The Opportunity Broadly Adopted by Institutional Investors Breakdown of Investors in Private Lending by Type Private Lending has been broadly adopted by institutional investors. Source: Preqin Private Debt Online 2018 9
Slide 10: Largest Investors in Private Debt
Private Lending: The Opportunity Largest Investors in Private Debt Among the top 30 global institutional quality backers in Private Debt*, the following Canadian investment goliaths make the top 15: *Source: Global Investor 30 - October 2019, Private Debt Investor 10
Slide 11: Our Competitive Advantage
Private Lending: The Opportunity Our Competitive Advantage Non-bank and alternative lending in North America is: ● Highly fragmented - many small players. ● $1-25 Million market opportunity is where the return arbitrage opportunity is available. ● A place where the customers’ interests are not well-
Slide 12: Capital Stack
Private Lending: The Opportunity Capital Stack The graphic below displays the relationship between each investment type and its position on the priority payment ladder, this is known as the “Capital Stack”: The higher up one’s investment is on the capital stack (i.e. Senior Securitized Debt) the mor
Slide 13: Next Edge Private Debt Fund
Next Edge Private Debt Fund ● To achieve its investment objective the Fund will allocate capital to a limited number of specialist credit advisors and managers of credit pools to primarily take advantage of profitable opportunities in the Investment private lending market. Objective ● The Fund aims
Slide 14: Our Process
Our Process 1 Origination 2 Underwriting 3 Monitoring 4 An effective source of capital 5 Pacing of cash flows/effective cash management 14
Slide 15: Areas of Private Lending Focus
Next Edge Private Debt Fund is focused on these areas of Private Lending: Factoring ● Accounts receivable financing, commonly referred to as factoring, is an essential component of trade finance and has existed in developed economies for centuries. ● Simply stated, factoring allows a company to impr
Slide 16: Key Relationship Parties
Next Edge Private Debt Fund Key Relationship Parties Garrington Group of Companies (“Garrington”) offers synergies within a large network of companies. This group has a significant presence in the North American SME lending business and has become a very strong partner to Next Edge Capital Corp. and
Slide 17: Origination Partners: Blacksail Capital Partners
Next Edge Private Debt Fund Origination Partners Blacksail Capital Partners Value Proposition: ● Blacksail exists to empower companies toward strong and sustainable growth. ● Blacksail focuses its expertise on the underserved small to mid sized middle market sector providing working capital loans fr
Slide 18: Origination Partners: Liquid Capital
Next Edge Private Debt Fund Origination Partners About Liquid Capital: ● Founded in 1999 with 45+ regional offices across the USA and Canada. ● Liquid Capital provides clients with personalized service delivered by a local decision maker. Clients also benefit from an international system and all of
Slide 19: Service Partner: LINE Financial
Next Edge Private Debt Fund Service Partner About LINE Financial: LINE Financial provides commercial finance firms the ability to maximize performance by offering industry leading portfolio and risk management. ● Specializing in loan management. ● Currently manages commercial finance, asset-based, a
Slide 20: Historical Performance
Historical Performance Class A11 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD2 2021 0.69% 0.64% 0.51% 0.51% 0.43% - - - - - - - 2.81% * 2020 0.51% 0.65% 0.22% 0.35% 0.28% 0.26% 0.60% 0.58% 0.56% 0.56% 0.58% 0.62% 5.90% 2019 0.69% 0.59% 0.77% 0.66% 0.63% 0.59% 0.58% 0.62% 0.57% 0.68% 0.64% 0.5
Slide 21: Summary
Summary Private Loans not Market Priced Strong Deal (Minimal Volatility) Origination Attractive Risk/ Relationships Reward Ratio Across North America The Next Edge Low historical Private Debt Strong and Correlation to Experienced Equity and Bond Fund Management Markets Team Low Interest Focus on Cap
Slide 22: Summary of Terms
Summary of Terms FundSERV Codes Class A NEC 448 (Interim – For Purchase) Class F1 NEC 442 FundSERV Codes Class A NEC 458 (Final) Class F1 NEC 452 Min. Initial Investment $10,000; for Accredited Investors only Min. Subsequent Investment $5,000; for Accredited Investors only Effective Management Fee C
Slide 23: Appendix
Appendix 23
Slide 24: Key Garrington Management Team Members
Key Garrington Management Team Members Rick Coles Rick Coles, Vice President and General Counsel, likes the challenge of the evolving, multifaceted role he fills at Line Financial. As General Counsel, he advises the company on any and all legal matters (projects, products, agreements, etc.) and is i
Slide 25: Key Garrington Management Team Members
Key Garrington Management Team Members Jamie Franz Jamie Franz has over 30 years of experience in senior management, investment management, sales management and loan origination for both commercial and consumer banking, asset-based lending and factoring. As Co- President of Blacksail Capital Partner
Slide 26: Key Garrington Management Team Members
Key Garrington Management Team Members Tammy Kemp Tammy Kemp serves as a Chief Credit Officer of Garrington Group of Companies. For almost 25 years, Tammy Kemp has honed her experience in all aspects of credit management, with a focus on strategically growing loan portfolios and preserving capital t
Slide 27: Key Garrington Management Team Members
Key Garrington Management Team Members Vince Mancuso Vince Mancuso is the Co-President of Blacksail Capital Partners (USA) and leads the US portfolio development strategy, focusing on improving asset growth, client retention, and companywide efficiencies. Vince has spent his entire career in commerc
Slide 28: Key Garrington Management Team Members
Key Garrington Management Team Members Robert Thompson-So Robert Thompson-So serves as President of Line Financial. In the financial services industry since 1992, Robert brings to Line Financial a background in capital markets, restructuring, mergers/acquisitions, and investment advisory—all areas t
Slide 29: Key Next Edge Team Members
Key Next Edge Team Members Robert Anton Robert Anton is the President and founding partner of Next Edge Capital. Robert has been active in the financial services industry for over 20 years, beginning his career as an Investment Advisor at various Canadian Financial Institutions. Prior to the formati
Slide 30: Key Next Edge Team Members
Key Next Edge Team Members Cheng Dang Cheng Dang is the Executive Vice President of Finance for Next Edge Capital. Cheng is responsible for financial management, planning, internal and external reporting, and tax compliance of the company and its funds, internal controls, and alongside the COO, Davi
Slide 31: Key Next Edge Team Members
Key Next Edge Team Members David Scobie David Scobie is a Managing Director, founding partner and Chief Operating Officer for Next Edge Capital Corp. (Next Edge Capital). David is responsible for the day to day operations of the firm. Prior to the formation of Next Edge Capital via a management spin
Slide 32: The LINE Financial Factoring Process
The LINE Financial Factoring Process LINE Financial ● Confirms validity of invoice ● Buys the invoice ● Receives order from ● Pays the invoice to customer ● Notifies customer Liquid Capital directly ● Fills order ● Takes advantage of ● Creates invoice trade finance from ● Personal guarantee & client
Slide 33: nextedgecapital.com
nextedgecapital.com linkedin.com/company/next-edge-capital twitter.com/NextEdgeCapital 1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 416.775.3600 Toll Free: 1.877.860.1080 info@nextedgecapital.com 33
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