May 15, 2020
Redemption/Liquidity Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)
Redemption Protocol
Bridging Finance Inc. (“Bridging”) is taking strong steps towards increasing liquidity in the Funds and has received questions on the protocol surrounding how redemptions will be processed once we have built up sufficient liquidity. Bridging will be processing redemption requests on a “first in, first out” basis for redemption requests with a trade date of March 31, 2020. Redemption requests with a trade date of March 31, 2020 will be processed ahead of redemptions requests with a trade date of April 30, 2020. Once Bridging has satisfied the March 31, 2020 redemptions, we will process the April 30 redemptions on a percentage basis and continue following this protocol until redemptions are fully paid out. For example, for redemptions with a trade date of April 30, 2020, we will be honouring redemptions as a percentage of all redemptions for the period – i.e. 5% or another percentage amount until all redemptions are paid.
Bridging reports that the redemption requests with a trade date of March 31, 2020 will be paid out imminently.
Liquidity Update
Bridging has taken several steps aimed at increasing the cash position in the Funds. Bridging thanks the many advisors who have cancelled redemption requests and continues to encourage advisors who can to cancel pending redemption requests. A number of loans are maturing and will be paid in full. In addition, Bridging has been in discussion with large family offices and institutions to sell credits at par or syndicate loans with them. Bridging has seen a significant amount of interest in these loans due to the quality and terms of the loans.
March 2020 was truly an unprecedented month for global markets and in the face of this global economic turmoil, Bridging continued to deliver the consistent, uncorrelated returns our clients have come to appreciate. For the month of March, the Bridging Income Fund LP Class F returned 0.60%, the Bridging Mid-Market Debt Fund LP returned 0.59% and the Bridging Indigenous Impact Fund returned 0.74%.
Bridging’s portfolio of loans continues to perform well in the face of the global economic shutdown with some borrowers even seeing an increase in demand for their essential goods and services. We are in constant contact with our borrowers and to date have not seen any deterioration in the quality of the loans or the ability of the borrowers to satisfy their interest obligations. Bridging anticipates being able to continue delivering the consistent, uncorrelated returns for the months and years ahead.
Bridging Income Fund LP Class F (March 2020) (LP open for new purchases)
| 1 mth | 6 mth | 1 yr | 3 yr | 5 yr | YTD | Since Inception* |
| 0.60% | 4.10% | 8.29% | 8.60% | 8.34% | 1.90% | 8.66% |
*Since Inception November 2013
Bridging Mid-Market Debt Fund LP Class F (March 2020) (LP open for new purchases)
| 1 mth | 3 mth | 6 mth | 1 yr | YTD | Since Inception* |
| 0.59% | 1.88% | 4.08% | 8.06% | 1.88% | 8.67% |
*Since Inception November 2017
Bridging Indigenous Impact Fund Class F (March 2020) (Open for new purchases)
| 1 mth | 3 mth | 6 mth | 1 yr | YTD | Since Inception* |
| 0.74% | 2.29% | 5.40% | 2.29% | 8.76% |
*Since Inception May 2019
The long-term opportunity of the “private debt” market remains compelling, which is why so many managers are moving into the sector. Asset owners, however, should remain focused on the manager’s longevity, track record and credit-and-collection experience, while considering other factors that can help fine-tune their risk-adjusted returns.
Bridging thanks advisors and clients for their support and wishes you and family all the very best in these unprecedented times.
Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca
Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca
David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;
Disclaimer:
The Funds, and the Bridging Indigenous Impact Fund, are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds, including the Bridging Indigenous Impact Fund, are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds or the Bridging Indigenous Impact Fund.
Bridging Finance is the manager of the Funds and the manager of the Bridging Indigenous Fund. Prepared by Bridging Finance Inc. (May/2020)