Market Opportunity

Capital markets generally and institutional equity investors are more focused on large deals in mature companies, with smaller growth companies representing a much smaller allocation of investment funds.

Across global stock exchanges, there are a substantial number of small listed companies that find it difficult to access growth capital.

Capital available for smaller transactions has become scarce and traditional finance

• has become less flexible
• has become more risk adverse
• requires a minimum transaction size
• is time consuming as in depth analysis is required to properly understand a company’s needs and assess risks.

For institutional investors, it can be challenging to deploy equity capital in junior companies due to their size.

However, junior companies can provide outstanding returns when they can access the required capital to liberate value

Investment Strategy

RiverFort Global Opportunities:

• is focused on filling this junior company funding gap – less funding competition presents attractive return opportunities
• will seek to secure superior downside protection by focusing on investing in companies using convertible, mezzanine, senior debt, and royalty/long term income instruments
• can help institutional investors gain exposure to junior companies by providing an investment company that can offer scale and credit-backed exposure to the junior sector.

The Company believes that there is a real opportunity to become a “merchant bank” to junior companies across a number of sectors, combining proprietary capital and structuring skills to create bespoke solutions.

The principal focus will be on investments of US$3 million to 10 million on a syndicated basis

Cash interest, fees, trading profits and other income streams earned are expected to form the basis of the return to shareholders by way of an attractive dividend yield and capital growth.