Navigate Private Yield Fund

Fraser Mackenzie Private Credit is currently making 2 to 5 year term loans from Navigate Private Yield Fund LP III in the form of mezzanine debt (including subordinated debt) to profitable, privately-owned and small-cap public companies. The Fund has a Canada-wide mandate but will also look at companies based in the United States on an opportunistic basis. The Fund will look at opportunities in almost any industry. The typical profile of FMPC’s portfolio companies are those with strong stable cashflows, and which may also have an asset base that is under-appreciated by its bank lender, such as a subscription base of recurring revenues, vacant land, or other assets not fully leveraged by a bank.

While the Fund sometimes is the only lender to a company, it more often partners with a Canadian bank or credit union where together we can provide a company with a full debt solution. In such instances FMPC provides a layer of term debt that takes a 2nd secured charge, subordinated to the bank’s position, thereby enhancing the borrower’s ability to meet its financial covenants with its bank.

Fraser Mackenzie Private Credit’s financings are typically event-driven, initiated when a shareholder group identifies a value enhancement opportunity but cannot secure senior bank debt for the full funding requirement. The most common reasons for FMPC funding include:

• acquisition financing, or financing of some other growth initiative
• buying out a retiring/disinterested shareholder or business partner
• supporting receivables collection cycles beyond bank’s usual 90 day maximum for inclusion in margining formula
• supporting capital needs outside of senior lender covenants
• lending against under-appreciated assets
• re-capitalization of the business’ balance sheet