Next Edge CIA Disciplined Growth Portfolio · TSX:PCD.UN
Next Edge CIA Disciplined Growth Portfolio — Next Edge Private Debt Fund — Investor Presentation (October 2022)
29 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, October 2022
Slide 1: Next Edge Private Debt Fund
Next Edge Private Debt Fund October 2022 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 What is Private Lending? ● Private Lending can be broadly defined as privately negotiated loans that take place outside of the traditional banking network. ● There are many different areas of private lending with varying levels of risk/reward. Benefits of Private Len
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. “ The growing world of private lending is replacing traditional fi
Slide 9: Private Lending: 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: Private Lending: 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: Private Lending: 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: Private Lending: 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: Historical Performance
Historical Performance Class A11 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD2 2022 0.62% 0.53% 0.40% 0.66% 0.63% 0.57% 0.52% 0.63% 0.49% 0.64% -- -- 5.84%* 2021 0.69% 0.64% 0.51% 0.51% 0.43% 0.32% 0.28% -0.10% 0.47% 0.56% 0.48% 0.55% 5.47% 2020 0.51% 0.65% 0.22% 0.35% 0.28% 0.26% 0.60% 0.58%
Slide 18: 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 19: 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 20: Appendix
Appendix 20
Slide 21: Key Garrington Management Team Members
Key Garrington Management Team Members Rick Coles Rick Coles likes the challenge of the evolving, multifaceted role he fills at Garrington Group of Companies. As General Counsel, he advises the company on any and all legal matters (projects, products, agreements, etc.) and is involved in instructing
Slide 22: Key Garrington Management Team Members
Key Garrington Management Team Members Melissa Huot Melissa Huot serves as Chief Operating Officer at Garrington Group of Companies. Melissa’s main responsibilities include overseeing the finance and accounting department as well as IT& Business Intelligence and the Human Resource strategy. Over the
Slide 23: Key Garrington Management Team Members
Key Garrington Management Team Members John Levac John Levac, Senior Advisor of Business Development at Garrington Group of Companies, has an extensive background in corporate finance which includes; asset based lending, distressed debt/CCAA restructuring, real estate, and leasing. In addition to th
Slide 24: Key Garrington Management Team Members
Key Garrington Management Team Members Robert Thompson-So Robert Thompson-So serves as Chief Strategy Officer of Garrington Group of Companies. In addition to his leadership duties as a part of the Garrington leadership team, Robert also serves as President of Garrington Financial Services, Presiden
Slide 25: 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 26: 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 27: 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 28: The Garrington Financial Services Factoring Process
The Garrington Financial Services Factoring Process Garrington Financial Services ● 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
Slide 29: 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 29
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