Bridging Finance has introduced a new vehicle targeting mid-market North American businesses, a move that comes shortly another Canadian firm launched a similar product.
The Bridging Finance Mid-Market Debt Fund, for which no fundraising target was specified, aims to provide “consistent, low-volatility and non-correlated yield to public markets”, the Toronto-based firm said in a statement said.
David Sharpe, the firm’s chief executive officer, said the fund will seek to raise between C$500 million ($400.46 million, €340.32 million) and C$1 billion and will target a high-net-worth individuals. The average loan will last one to four years, and the fund will offer both senior and mezzanine debt investments.
The new open-ended vehicle will be offered to investors alongside the Sprott Bridging Income Fund. Bridging Finance sub-advises SPR & Co. – which purchased assets from Sprott Asset Management, a firm that rebranded itself Ninepoint Partners last week – on the fund, which has about C$500 million in assets under management.
Founded in 2012, Bridging provides loans, typically with a six- to 36-month term, used for growth, capital expenditures and debt restructuring as well as acquisitions and leveraged buyouts. The firm targets companies with hard assets, particularly those in the manufacturing, construction, retail and distribution, transportation, real estate and infrastructure sectors.
Last week, Ninepoint launched the Sprott Canadian Senior Debt Fund, which will be sub-advised by Waygar Capital, the company said in a Thursday statement. The vehicle will originate first lien senior secured loans to mid-market companies in the country’s defence sector in addition to manufacturing and other fields, particularly firms that are restructuring or conducting turnaround transactions, a source familiar with the matter previously told Private Debt Investor.
The vehicle is targeting a one-year return of 10 percent and an average loan-to-value ratio of 60 percent for its portfolio. The fund underwrites loans between C$500,000 to C$15 million.