Merchant Opportunities Fund Closes $27.5 Million BMO Credit Facility
VANCOUVER, BC, July 11, 2022 /CNW/ – The Merchant Opportunities Fund, a Vancouver-based private debt fund focused on investing in specialty finance portfolios, today announced that it has increased its revolving debt facility with the Bank of Montreal (“BMO”). The facility now consists of a $27.5 million funding commitment with a two-year term along with a $12.5 million accordion.
The Merchant Opportunities Fund invests in proprietary specialty finance portfolios that in many cases consist of loans or advances that are originated, underwritten, and serviced by their primary originator, Merchant Growth. The BMO debt facility specifically provides funding for the Merchant Growth portfolio.
“As the economy continues emerging from the COVID-19 pandemic, the specialty finance industry is playing a critical role in supplying capital to businesses as they reboot and grow again. This facility with BMO gives us the debt capital to ensure that Merchant Growth continues leading this important charge, while also improving the financial performance of our funding vehicle, the Merchant Opportunities Fund,” said David Gens, President & CEO of the Merchant Opportunities Fund and Merchant Growth.
“With the volatility in the public markets this year, Merchant Opportunities Fund has continued to deliver strong investment returns for our investors and has really shown the uncorrelated nature of the Fund with traditional asset classes. This BMO debt facility allows us to continue deploying capital in attractive opportunities for the Fund while also providing financing for many small businesses that rely on Merchant Growth to fund their business activities,” said Colton Marentette, VP Capital Markets with Merchant Opportunities Fund.
Through the fund’s twelve-year track record of prudence and profitability, the Merchant Opportunities Fund has helped its investors generate attractive and consistent returns while also contributing to the prosperity of more than 14,000 businesses and individuals. Since its inception in 2010, the Fund has generated a compound annual return net of all fees of 9% for its investors.
Our mission is to provide our investors with returns typically only accessible to institutional or accredited investors through private investments, coupled with greater liquidity options and flexible redemption rights. We do this by investing in short-term, small to mid-sized business credit and consumer loans originated by successful specialty finance companies. Since 2010, our capital has contributed to the prosperity of more than 14,000 Canadian businesses and individuals. To learn more, visit www.merchantopportunitiesfund.com.
Merchant Growth is a leading Canadian financial technology company that specializes in small business financing. Over the past decade, Merchant Growth has supported Canadian businesses with hundreds of millions of dollars in growth financing. Using an innovative approach that includes the latest technology, complete transparency, and thoughtful customer care, Merchant Growth is committed to helping make business financing easy to understand and accessible. To learn more, visit www.merchantgrowth.com.
SOURCE Merchant Opportunities Fund
For further information: Colton Marentette | VP Capital Markets | Merchant Opportunities Fund | 236.888.7900 | marentette@merchantopportunitiesfund.com
