Merchant Opportunities Fund has expanded its syndicated revolving credit facility from $165 million to $240 million, providing additional capacity for the Vancouver-based private debt fund’s specialty finance investment strategy.
BMO continues to serve as agent and sole bookrunner for the facility alongside a syndicate of additional lenders.
The $75 million increase expands the fund’s ability to invest in specialty finance portfolios.
Merchant Opportunities Fund deploys the majority of its capital into opportunities originated by Merchant Growth, a Canadian provider of digitally originated small-business financing.
The fund said it has supported financing for more than 15,000 businesses and individuals during its 15-year history.
Since its inception in 2010, Merchant Opportunities Fund has generated an approximately 10% compound annual return for investors, net of fees.
The fund invests primarily in short-term small- and mid-sized business and consumer financings originated by established specialty finance companies.
Total capital deployed since 2010 has surpassed $1.4 billion.
The larger revolving facility gives the fund additional flexibility to pursue specialty finance opportunities as its investment platform scales.
KEY QUOTE:
“This latest expansion underscores both the strength of our track record and the deepening confidence of our world-class financial partners. With increased capacity, we are even better positioned to capitalize on high-quality opportunities in the specialty finance sector and to continue delivering strong, stable returns for our investors.”
David Gens, Founder And CEO Of Merchant Opportunities Fund
