Sloane Capital Corp. (Sloane) is an Exempt Market Dealer
registered in 7 Canadian provinces. Sloane was recently awarded
the prestigious 2013 EMDA Deal of the Year Award for one of the
offerings that Sloane participated in as the Lead Agent. With a
number of income and growth offerings available to its clients,
Sloane is proud to have been selected to act as the Lead Agent
for Beacon Consumer Holdings Inc., an innovative offering of an
asset class that has previously not been available to investors in
the exempt market.
The “Exempt Market” in Canada provides a unique
opportunity to obtain exposure to transactions that would normally
be available only to sophisticated and institutional investors.
As a practical matter, the broad range of investments has not
yet tapped the exempt market and we still see the investment
offerings in the exempt market tending to remain concentrated
in areas like the resource and real estate sectors. Numerous
other types of investments have generally not been available to
investors in the exempt market.
Things will soon change.
Beacon Consumer Holdings Inc. (BeaCH) is bringing a unique
investment opportunity, by way of an Offering Memorandum to
qualified investors, with the assistance of EMD Sloane Capital
Corp. The word “unique” is used far too frequently but in this
case the term is definitely appropriate. BeaCH provides investors
with a high quality and high return fixed income investment that
previously has only been available to institutions of significant
size. Securitization “technology” has been used in the Canadian
and international institutional marketplace to provide secure
investments in a variety of asset pools ranging from auto loans,
credit card receivables, residential mortgages and a variety of
other consumer asset classes. Historical performance of the top
rated transactions has been near perfect.
Securitization involves the pooling of similar assets in a
bankruptcy-remote (i.e. the bankruptcy of the seller will NOT result
in any adverse impact on the transaction nor the assets sold to
the issuing vehicle) entity which in Canada is usually a Trust.
In our case, Beacon Trust, will be the underlying issuer. For
convenience sake “Beacon” will be used to denote the aggregate
transaction involving BeaCH and Beacon Trust. Beacon will be
purchasing pools of high yielding consumer receivables originated
A Welcomed New Asset Class
for the Exempt Market
By Stephen Freedman, CEO & CCO, Sloane Capital Corp.