Next Edge Capital Corp. Obtains $50,000,000 USD Credit Facility

TORONTO, April 28, 2022 /CNW/ - Next Edge Capital Corp. ("Next Edge Capital")[*] is pleased to announce the closing of a revolving credit facility (the "BMO Facility") for USD $50 million with BMO Financial Group ("BMO") and NELI Canada II LP, a special purpose funding vehicle[1] utilized by the Next Edge Private Debt Fund and Next Edge Private Debt Fund (USD) (the "Funds").

The Funds, with total loan portfolio assets of more than CAD $400 million[2], have a diversified underlying loan portfolio comprised of loans with 130+ borrowers across diverse sectors in 6 Provinces and 29 States. Launched in June 2015, the Next Edge Private Debt Fund has an annualized return since inception (net of fees) of 8.3%[3].

The BMO Facility will assist in the liquidity management of and allow for expansion of the Funds' portfolio of lender finance, equipment finance, and specialty finance loans; and strategically augment the Funds' other existing credit facility[4] that assists in the liquidity management of factoring and asset-based loans.

A major challenge when managing funds that provide lending capital is to manage cash by matching investor inflows to loan funding outflows. A significant benefit of this revolving BMO Facility will be to allow for a reduction in unutilized cash and allow for greater liquidity flexibility in the Funds, which Next Edge Capital believes will in-turn benefit all stakeholders, from fund investors to borrower clients.

"We are very happy with the closing of this credit facility with BMO; a world class institution that truly understands our business, and our needs. They have been a great team to work with. The BMO Facility will aid in the future growth of our business through the funding of new loan opportunities and the operating efficiency of the overall collective businesses involved. We look forward to a long-term and jointly rewarding partnership with BMO for years to come," mentioned Robert Anton, President of Next Edge Capital.

"It is always an honor and a pleasure to work with high caliber professionals like the team at Next Edge Capital and BMO. We look forward to continuing to bring our best in-class service and expertise to further strengthen and deepen this trusted relationship," says Robert Thompson So, Chief Strategy Officer at Garrington Capital.

For more information, please contact Robert Anton, President of Next Edge Capital, at [phone] or via email at [email protected], or Robert Thompson-So, Chief Strategy Officer of Garrington Capital, at [phone] or via email at [email protected].

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^* Manager of the Funds.

About Next Edge Capital

Next Edge Capital Corp. is an alternative investment fund manager and a leader in the structuring and distribution of alternative and private credit fund products in Canada. The firm is led by an experienced management team that has launched numerous investment solutions in a variety of product structures and has been responsible for raising over $3 billion of alternative assets since 2000[5]. Next Edge specializes and focuses on providing unique, non-correlated pooled investment vehicles to the Canadian marketplace.

Further information can be found at www.nextedgecapital.com.

About Garrington Group

Garrington Group, Inc. ("Garrington") is a leading North American loan origination, underwriting, and operations platform and servicer. Garrington and its affiliates ("Garrington Group") provide working capital lending facilities ranging from $1 million to $30 million to small- and medium-sized companies through creative investment funding solutions. Garrington Group has been involved with the deployment and management of more than $6 billion since its inception[6]. With offices in Austin, Chicago, Toronto and Westport, Garrington Group currently has approximately 60 employees[7] in Canada and the US.

Garrington is the primary Credit Advisor to the Funds.

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¹ NELI Canada II LP is ultimately wholly owned by the Funds, managed by Next Edge Capital, and holds a loan portfolio jointly managed and governed by Next Edge Capital and Garrington.

² Unaudited, as at Feb 28, 2022. Total of underlying loan portfolio value across and within investment/special purpose vehicles.

³ Based on the returns net of all fees and expenses associated with the Next Edge Private Debt Fund Class F1 Units charged from June 1, 2015 (trading start date) to February 28, 2022.

⁴ The credit facility, closed on Aug 9, 2019, is between another major financial institution and a separate, ultimately wholly-owned special purpose vehicle of the Funds.

⁵ Please note that over CAD $2 billion of the CAD $3 billion of alternative assets raised relates to assets raised at a previous firm(s).

⁶ Fundings are based in part upon funds deployed since inception by the predecessor firm to the Garrington Group of Companies Inc., Liquid Capital Corp, which was founded in 1999, as well as funds deployed in conjunction with the firm's primary capital provider, Next Edge Private Debt LP.

⁷ Employees, consultants, and advisors as of December 31, 2021, across all companies and subsidiaries.

SOURCE Next Edge Capital Corp

Further information can be found at www.garringtoncapital.com.