Canadian fund manager Third Eye Capital has launched the Third Eye Capital Alternative Credit Trust (ACT), an open-ended, unincorporated investment trust. It will invest in privately-negotiated senior secured debt primarily of Canadian companies that are “Ignored or misunderstood by traditional financing sources”, the company said in a statement.
Its principal investment objective is to “Achieve superior risk-adjusted returns with minimal volatility and low correlation to most other asset classes,” the statement added.
Toronto-based Third Eye already ‘sub-manages’ a Luxembourg-domiciled vehicle, Third Eye Capital Credit Opportunities Fund, and the Canada-based Sprott Private Credit Trust. Both have similar strategies to the new fund.
The firm was founded in 2005 by chief executive Arif Bhalwani and vice chairman David Alexander. The firm’s bench also includes former CIT Canada chief credit officer Algis Vaitonis, who is head of portfolio operations, and chief financial officer Brian Hick.
“By looking through multiple lenses, Third Eye Capital has a proven ability to see quality in companies that other lenders do not see or appreciate. This has resulted in several businesses being able to free up hidden asset values and broaden their credit availability in order to solve the financing problems,” the firm said.
The ACT fund will only be available to Canadian investors, the firm said, with units initially offered at $10.00 per unit until 28 June, with a minimum subscription amount of $150,000 or $10,000 for those who qualify as ‘accredited investors’.