Centurion Asset Management Inc. Launches Centurion Financial Trust
Centurion Asset Management Inc. (“CAMI”) is pleased to announce the launch of a new investment trust, Centurion Financial Trust (“CFIT”), which will focus on alternative credit investments.
CAMI, in surveying the lending landscape, concluded that the market for alternative credit is highly fractured. Most lenders tend to specialize in a singular structure, for example, in real estate loans, factoring, royalties, mezzanine debt, junior debt, or other specific niches.
This has meant that borrowers have had to find a capital provider that can work with their needs, but with the requirement that this also fits the particular niche of the capital provider. In other words, borrowers had to accept a capital solution that fit their lender as opposed to the lender meeting the needs of the borrower.
The core need of borrowers is for an alternative to a bank, not to be beholden to a particular structure. CAMI believes that not only is there demand from borrowers for a needs-based diversified alternative to bank loans, but that there is demand from investors for a diversified portfolio of alternative credit investments.
Key Features of Centurion Financial Trust
- Total Return Target: 9% to 12%
- Monthly distributions
- Re-investment options and incentives
Centurion Financial Trust's investment objectives are to provide investors with income, payable monthly, with the potential for some capital growth from a diversified portfolio of Canadian and U.S. private debt investments. The targeted investments will include but are not limited to, mortgages, senior secured term loans, asset backed loans, bridge loans, subordinated loans, mezzanine loans, royalties, and syndicated loans. The Trust will be flexible on structures while providing debt solutions for small- and medium-sized corporations and projects that are underserviced by traditional lending providers.
CAMI has extensive experience as an alternative lender and recently added additional team members specialized in corporate lending to support the strategy extension.
CFIT, in many ways, is similar to Centurion Real Estate Opportunities Trust (“CREOT”), a fund invested in real estate debt and equity opportunities, but with the strategy extended for further diversification into other forms of private debt, including corporate debt.
CAMI chose to set up CFIT as opposed to extending the mandate of CREOT to allow its clients to choose between staying in CREOT as a real estate-based private debt investment trust or to move all or a part of their investment to CFIT, and benefit from its more broadly diversified mandate.
As such, investors in CREOT will be permitted to roll over their investment into CFIT without incurring any penalties. As a goodwill gesture to investors in Centurion Apartment Real Estate Investment Trust (“CREIT”), investors will also be permitted to make the same election to roll over into CFIT without penalties. The ability to roll over into the new fund is an option for investors and isn’t mandatory. Any investor wishing to stay in their current investment strategy is free to do so. Rollovers are not tax-deferred events, and investors should seek their own advice from their tax and investment advisors as to whether participating in the rollover opportunity is appropriate to their circumstances.
This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in Centurion Financial Trust.*
For more information, please visit www.centurion.ca or call us at:
Financial Advisors: 1-888-992-5736
Email: [email protected]
*Qualified Investors Only. Available by Offering Memorandum.