Delivering appreciation to stakeholders and borrowers
by discovering value and potential where others may not.
Blue Copper Asset Fund is a secured asset fund that lends into the mispriced risk market.
This market has historically and is currently delivering strong returns based on lender expertise combined with client history. The clients lent to are generally mispriced for one of two reasons; the amount of the loan and corresponding due diligence required does not fit the chartered banks lending matrix or the asset(s) being pledged by the client are outside standard banking guidelines.
The market exists because of the ability, willingness, and ability of the agent to spend time learning the intricacies of the asset(s) and the client.
Our Approach
BCAF, through its managing agent, has a solid track record of true hands-on value creation geared towards beneficial upside for borrowers and lenders.
Asset based lending protects against downside risk while affording the borrower an opportunity to leverage assets and receive a competitive finance rate.
We nurture and develop unconventional lending relationships in often undervalued and overlooked private credit segments to deliver stable and growing returns.
Our Philosophy
Provide deeply connected, relationship driven alternative loans that benefit the lender and borrower directly.
A preferred spot for investors seeking risk adjusted returns that have less exposure to the broader markets and volatile global economic climate.
Provide asset backed financing that returns steady incremental gains to investors, in a growing asset class, with the risk spread across a diversified portfolio of borrowers and assets.
The Fund
quick glance
A pool of funds amassed through bondholders that selects, delivers, and administers private finance serialized asset backed loans through a managing agent in western Canadian communities.
BCAF is well diversified on many levels: assets class diversity, client diversity and industry diversity. BCAF creates long term value within the emerging private financing market.
management
Through the managing director and managing agent, BCAF offers bondholders access to mispriced risk within the private finance market with the bondholder benefitting from the expertise, experience, and clientele of management within these key markets.
Management has an entrepreneurial approach to identifying and accelerating value creation across the portfolio pared with a keen sense of the obligation to being a good steward of stakeholder funds through transparency and reporting.
managing agent
The Managing Agent has participated in the private financing space since 2006. Having firsthand experience with thousands of clients provides the managing agent a unique perspective for BCAF through real life interactions and intimate knowledge of the end borrower and the related assets pledged.
Using a mindful approach with clients and analyzing each deal through a lens beyond numbers on spreadsheets has graced the managing agent with opportunities for income and security that conventional lenders may miss. This mispriced risk creates value and security for bondholders.
Our Business
BORROWERS
BCAF borrowers are generally small business owners and/or individuals who are pledging an existing serialized asset in exchange for financing. Borrowers may also be purchasing an asset for personal or business use and that asset becomes the securitization. The assets or the client likely does not fall into the restrictive structures that exist in mainstream banking.
Examples such as a collector vehicle, a used skid steer, or a vehicle older than 7 years represent strong private credit market assets that do not meet bank guidelines.
strategies
Across the portfolio, BCAF looks to a maximum loan to value of 75%. On a serialized asset, BCAF will be the first lien holder and on real estate not more than second priority. Through the managing agent, BCAF has access to all loans in the portfolio.
Rather than a securitized bundle whose breakup value is difficult to determine, BCAF is keenly aware of where the funds are and who has them. On a micro level, the managing agent has strong checks and balances in place to ensure the asset is protected and the client is accessible. Borrowers make at least one payment per month on their loans and that consistency is a significant contributor to the success of BCAF.
lending example
Client has a landscaping business and gets a new contract that requires additional equipment. Rather than purchase a new skid steer for $70,000 she finds a used unit for $35,000 that will accomplish the desired result.
Because the unit is used, many conventional lenders are not able to provide financing. The client would prefer to put $10,000 down and finance the remaining $25,000 to limit their obligations. Although the new unit would come with a preferred interest rate the client is much more comfortable paying a higher rate on a smaller amount while still getting what is needed to grow their business.
Over the long term the client makes the determination that she is benefitting from the BCAF provided financing. The financing provided delivers on the client’s needs while providing a strong return to stakeholders.
Stakeholders
Offering
Memorandum
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Term Sheet
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Financials
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