The Bank of Montreal provided a $27.5 million revolving debt facility to Merchant Opportunities Fund, a Vancouver-based diversified credit opportunities fund focused on compounding capital over the long-term.
The facility consists of a $15 million funding commitment with a two-year term along with a $12.5 million accordion.
The Merchant Opportunities Fund invests in proprietary specialty finance portfolios that, in many cases, consist of loans or advances that are originated, underwritten and serviced by their primary originator, Merchant Growth. The BMO debt facility specifically provides funding for the Merchant Growth portfolio.
“This year has been challenging for many small businesses. As we get through this pandemic and government subsidies inevitably taper off, the specialty finance industry will play a critical role in supplying capital to businesses as they reboot and grow again. This facility with BMO gives us the debt capital to ensure that Merchant Growth leads this important charge while also improving the financial performance of our funding vehicle, the Merchant Opportunities Fund,” David Gens, president and CEO of the Merchant Opportunities Fund and Merchant Growth, said.
