TORONTO, ON – January 17, 2024 – Montfort Capital Corp. (“Montfort” or the “Company”) (TSX-V:MONT/OTCQB:MONTF), a trusted provider of focused private credit strategies for institutional investors, family offices, and wealth managers, today announced the launch of a new strategic growth initiative, Nuvo Financial (Nuvo), which is focused on providing net asset value (NAV) loans to small and mid-sized investment funds in Canada. The new private credit growth initiative has received up to $50 million of funding from a Canadian chartered bank. Nuvo will leverage the core capabilities, resources, and infrastructure of Montfort, which currently manages a diversified collection of consumer and commercial private credit strategies.
“Nuvo is adding to Montfort’s private credit business by offering net asset value-backed loans, known as ‘NAV loans’, primarily to small and mid-sized private market fund managers. This is a specialized and fast-growing market in Canada and elsewhere,” said Sam Hall, Vice President of Nuvo. “The new business reflects our commitment to growth and strategic innovation in scalable private credit products and underscores our deep sector knowledge and ability to develop new business opportunities in private credit.”
NAV loans allow investment fund managers to borrow against the equity value of an investment fund. It is estimated that the US market for NAV-based financings is between $80-$100 billion, with about $30 billion of transactions funded in 2022. Given the ongoing challenges in the private equity fundraising and exit environment, the NAV loan market continues to see tremendous growth.
About Montfort Capital Corp.
Montfort is a trusted provider of focused private credit strategies for accredited investors, family offices and the IIROC channel. We employ focused strategies, experienced management teams and advanced technology to drive superior risk-adjusted investment returns For further information, please visit www.montfortcapital.com
For more information, please contact:
Tim McNulty / Darren Seed
Incite Capital Markets
Andrew Abouchar, Interim CEO
Montfort Capital Corporation
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’ and similar expressions, and within this news release include any statements (express or implied) respecting the future growth of the Company and the Company’s future financial performance.
Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the assumption that the Company and its investee companies are able to meet their respective future objectives and priorities and assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company.
Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Montfort’s business. Material risks and uncertainties applicable to the forward-looking statements set out herein include but are not limited to: intense competition in all aspects of business; reliance on limited management resources; general economic risks; new laws and regulations and risk of litigation. Although Montfort has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Montfort. Accordingly, readers should not place undue reliance on forward-looking statements. Montfort undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.