Canada-based Sprott Asset Management has signed a sub-advisory agreement with Bridging Finance to run the Sprott Bridging Income Fund.
The fund seeks a minimum yield of 6.5% per annum by investing in factoring and asset-backed loans that have a low correlation to traditional asset classes.
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In addition, the fund will provide debt capital to middle-market Canadian and US companies that are unable to access traditional financing sources.
John Wilson, CEO of Sprott, said: "The Bridging Finance team has proven expertise in factoring, a specialized type of commercial lending that provides improved cash flow to businesses with credit-worthy receivables. This new offering will both expand our product lineup and enhance our established lending platform."
David Sharpe, president and COO of Bridging Finance, said: "We are excited to work with them to introduce this product to investors seeking consistent yield and stable income, which can be difficult to attain, particularly in a low-interest rate environment."
Peter Loach, executive vice president of product development at Sprott, said: "The investment fund landscape continues to quickly evolve along with the needs and sophistication of investors."
Sprott Asset Management manages assets primarily for institutions, endowments and high net worth individuals, while Bridging Finance is a private investment management firm providing middle-market Canadian companies with alternatives to the financing options offered by traditional lenders.
