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Contact Next Edge Capital

1 Toronto Street, Suite 200
Toronto, ON M5C 2V6

Telephone: 416.775.3600
Toll-free: 1.887.860.1080
Fax: 416.775.3601
Email: info@nextedgecapital.com

Next Edge RCM Private Yield fund

Next Edge RCM Private Yield fund

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Yes, I meet the criteria.
No, I don’t meet the criteria.
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Are You An Accredited Investor?

If you meet the definition “accredited investor” (see below), you may invest a minimum of $10,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company’s internal policies.

The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions (“NI 45-106”) because the Subscriber is one of the following:

(a) except in Ontario, a Canadian financial institution, or a Schedule III bank;

(b) except in Ontario, the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);

(c) except in Ontario, a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

(d) except in Ontario, a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer;

(e) an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
e.1 an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);

(f) except in Ontario, the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;

(g) except in Ontario, a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

(h) except in Ontario, any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;

(i) except in Ontario, a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada

(j) an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets, having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

(j.1) an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5 000 000.;

(k) an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;

(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;

(n) an investment fund that distributes or has distributed its securities only to: (i) a person that is or was an accredited investor at the time of the distribution; (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum Amount Investment ] and 2.19 [ Additional Investment in investment funds ] of National Instrument 45-106; or (iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of National Instrument 45-106;

(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account, managed by the trust company or trust corporation, as the case may be;

(q) a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and

(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility advisor, or an advisor registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;

(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;

(u) an investment fund that is advised by a person registered as an advisor or a person that is exempt from registration as an advisor;

(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, theregulator as: (i) an accredited investor; or (ii) an exempt purchaser in Alberta or British Columbia after September 14,2005; or

(w) a trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor’s spouse or of that accredited investor’s former spouse.

Yes, I meet the criteria. No, I don’t meet the criteria.

OVERVIEW

Fund Objective

The Next Edge RCM Private Yield Fund (the ‘Fund’) aims to achieve consistent total net returns of 10%+ per annum by providing opportunistic financing via secure debt or debt-like instruments to chosen companies throughout North America which are typically 6 – 36 months in duration, but may be as long as 60 months. The Fund will pay out an 8% per annum yield distribution on a quarterly basis.

The Credit Advisor

The Fund’s credit advisor is R.C. Morris Capital Management Ltd. (‘R.C. Morris’). Founded in 2008, R.C. Morris is a privately-owned fund management company based in Vancouver, British Columbia.

Investment Highlights

The primary investment strategy of the Fund will be to provide asset or cash flow-backed debt to chosen companies based on the following parameters:

  • Privately originated and negotiated
  • Short to medium term repayment schedule – typically 6 to 36 months; but may be as long as 60 months
  • General Security Agreement and Registered Security
  • Debt capacity fixed by determined liquidation values of specific secured assets, pools of assets or verifiable future cash-flows

Integral to the investment strategy of the Fund is the experience and capacity of the Credit Advisor in restructurings, workouts, turnarounds, forensic accounting, mergers, acquisition disposals, and interim management services. This makes possible both the creative structuring of financing solutions while safeguarding the capital of the Fund, and pro-active involvement with the investee companies to ensure both present and future compliance with financing terms.

The Fund will only make debt investments where the Manager and the Credit Advisor believe that in an event of default, the full amount owing to the Fund can be repaid by taking control of the secured assets and actively pursuing any or all of the following:

  • Asset liquidation
  • Aggressive working capital management through taking direct control
  • Managing out a recurring revenue tail
Manager
Next Edge Capital Corp.
Credit Advisor
R.C. Morris Capital Management Ltd.
Fund Type
Mutual Fund Trust
Fund Status
Open
Launch Date
October 2017
Registered Plan Status
Eligible
Minimum Initial Investment
$10,000; for Accredited investors only
Redemptions
Monthly with 6 months notice
Management Fee
Class A
2.50% (1.00% servicing fee payable out of the MGMT fee)
Class F
1.50%
Performance Fees
20% above an 8% hurdle (with a catch-up)
Valuation Pricing
Monthly
Distributions
8% per annum, paid quarterly
Fund Codes (Interim – For Purchase)
Class A - NEC 511
Class F - NEC 513
Fund Codes (Final)
Class A - NEC 521
Class F - NEC 523