Mortgage fund targets retail and institutional investors
Spartan Fund Management has teamed up with Capital Asset Lending Inc. (CAL) to launch a new residential mortgage fund for retail and institutional investors.
The Capital Asset Income Fund (CAIF) offers access to CAL's portfolio of residential mortgages, allowing investors to tap into the growing market of private mortgage lending. The fund primarily invests in mortgages managed by Mortgage Company of Canada Inc. (MCOCI) and First Mortgage LP (FMLP).
Both MCOCI and FMLP cater to borrowers who have solid credit scores but fail to meet federal income requirements for traditional bank or trust company loans. These borrowers often include individuals who fall short of stringent qualification criteria despite being creditworthy.
The fund will offer several classes of units (Class A, Class F, and Class I units), available to accredited investors or qualified purchasers. Potential investors are encouraged to review the fund’s offering memorandum and consult with their financial advisors.
"We are pleased to add CAIF to Spartan's alternative investment line-up," Spartan president Gary Ostoich said in a joint press release. "Capital Asset Lending is one of the major players in this sector and we are excited to offer a residential mortgage fund to retail and institutional investors."
"We are thrilled to be working with Spartan, one of Canada's leading providers of alternative investment solutions, to bring this new vehicle to market," added Raj Babber, CEO of Capital Asset Lending .
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Spartan Fund Management, established in 2006, is based in Toronto and manages more than $1.8 billion in client assets. The firm specializes in alternative investment solutions for high-net-worth individuals and family offices. CAL, founded in 2009, provides mortgage origination, underwriting, and administration services, and is licensed as a mortgage administrator in Ontario.
MCOCI, which has been in operation since 2013, is one of the largest private mortgage investment corporations in Canada, with over $1 billion in assets under administration. FMLP, launched in 2021, focuses on first mortgages in Ontario, with plans to expand into the Greater Vancouver Area.
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