Garrington Group up of C Compani panies es Corporate - - PowerPoint PPT Presentation

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Compani panies es

Corporate Presentation

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Corporate Structure

Loan Origination Underwriting

LINE Financial Services Inc.

Canada USA

LINE Financial Services Inc.

Capital Provider

$

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Fund entrepreneurial companies with creative and optimal financing solutions, providing an alternative source of capital to support business development.

Mission

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• Become the premier alternative lender in North America, supporting

entrepreneurial companies with creative and optimal lending solutions.

• Mirror a close-knit group of experienced professionals which resolutely

embraces a shared culture of respect, integrity, and optimism, making North America stronger.

Vision

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• Over 80 team members involved.*
• Business to business lending.
• Approximately $400 Million of loans managed by the collective group.*
• Over 300 financing facilities.*
• Current portfolio of loans spanning 31 states and 8 provinces connecting with

local businesses.*

• Operating across all of Canada and the USA.

* As of December 31, 2019 across all companies which form a part of the Garrington Group of Companies as well as the Capital Provider – Next Edge Private Debt LP.

Who we are

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The Opportunity

Non-bank and alternative lending in North America is:

• Highly fragmented - many small players.
• $1-30 Million market opportunity is where the return arbitrage opportunity is available.
• A place where the customers’ interests are not well-represented; customer service is poor.
• A large opportunity for a client-centric firm such as Garrington to capture market share.

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Our Focus

Garrington is focused on these areas of Private Lending:

• Asset Based Lending
• Factoring
• Specialty Finance Lending
• Other Unique Types of Secured Lending

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Total Loans Outstanding*

* ** * Total loans outstanding based upon the aggregate of the funds deployed by Next Edge Private Debt LP and other Line Financial Inc. funds deployed as at December 31, 2019. ** Projected AUM is based on current capital raising monthly in flows. Capital in flows are subject to change and revision without notice.

• 100,000

200,000 300,000 400,000 500,000 600,000

Historical AUM Projected AUM

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The Next Edge Private Debt LP

Attractive Risk/ Reward Ratio Strong and Experienced Management Team Focus on Capital Preservation Low Interest Rate Sensitivity Low historical Correlation to Equity and Bond Markets Strong Deal Origination Relationships Across North America Private Loans not Market Priced (Minimal Volatility) * Please note that over CDN $2 Billion of the CDN $3 Billion of alternative assets raised relates to assets raised at a previous firm(s). ** Next Edge Private Debt Fund invests substantially all of its assets in the Next Edge Commercial Trust and the Next Edge Commercial Trust invests substantially all of its assets in the Next Edge Private Debt LP. *** Next Edge Private Debt Fund AUM as of August 1, 2019.

CAPITAL FUNDING

Next Edge Private Debt LP - Capital Provider

About Next Edge Capital:

• Formed in July 2006, was renamed Next Edge

Capital Corp. (“Next Edge”) after the spinout of Man Investments Canada Corp. from Man Group plc (“Man”) in June 2014.

• Specialist in Alternative Investment Funds.
• Management team responsible for raising over

CDN $3 Billion* of alternative assets in Canada since 2000.

• The Next Edge Private Debt Fund** manages over

$265 Million*** with a 4 year track record.

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Who is Blacksail Capital Partners

LOAN ORIGINATION

Value Proposition:

• Blacksail exists to empower companies toward strong and sustainable growth.
• Blacksail focuses its expertise on the underserved small to mid sized middle market sector providing

working capital loans from $1 Million to $30 Million secured by Accounts Receivable, Inventory, Machinery & Equipment and Real Estate.

• Blacksail finances companies throughout Canada and the United States.
• While its core competency is finding working capital solutions, Blacksail also offers a wide range of financial

products to meet the needs of our clients.

• Borrowers use loan proceeds to fund: working capital for growth, acquisitions, restructurings/turnarounds,

etc.

• Blacksail team has decades of experience.
• Blacksail is backed by the Next Edge Private Debt LP, which provides a strong capital base.
• Blacksail provides a place to go, when the Bank says NO.

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Who is IdentiQ Finance

LOAN ORIGINATION

Solutions: Asset Based Lending - Revolving lines of credit from $1 to $30 Million, secured by eligible accounts receivable, inventory, and other tangible assets, and term loans to qualified borrowers. Accounts Receivable Financing - Factoring facilities from $250,000 and up. Industry agnostic throughout the US. Lender Financing - Revolving lines of credit from $2.5 million to $30 Million to eligible commercial and consumer financing companies throughout the US. Term Loans - As an accommodation to an RLOC, loans from $250k against eligible fixed assets and real estate. What to expect:

• Fast underwriting and fast decisions.
• No red-tape and no surprises.
• Not just money, also a trusted advisor.
• Direct collaboration with decision-makers.
• Dedication to service over self-interest.
• A portfolio management team that understands

your needs.

• Total commitment to your company’s success.

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About Liquid Capital:

• Founded in 1999 with 45+ regional offices across the USA and Canada.
• Liquid Capital provides clients with personalized service delivered by a local decision maker. Clients also

benefit from an international system and all of its extensive resources.

• The Liquid Capital network has purchased over $3 Billion in receivables purchased since inception.
• Liquid Capital provides financing solutions for companies with up to $250 Million in revenue with credit lines

from $50,000 to $20 Million.

• Liquid Capital areas of specialty include:
• Accounts Receivable Factoring
• Asset Based Lending
• Supply Chain Finance

LOAN ORIGINATION

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Who is Liquid Capital

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UNDERWRITING

Who is LINE Financial

About LINE Financial: LINE Financial provides commercial finance firms the ability to maximize performance by offering industry leading portfolio and risk management.

• Specializing in loan management.
• Currently manages commercial finance, asset-based, and factoring transactions of approximately $400

million.*

• Over $3 Billion of loans deployed since inception.**
• Deal size $1-30 Million.
• Underwriting and operations team of over 40 employees.
• Management team deeply experienced.

* Based upon the aggregate of the total assets of the Next Edge Private Debt Fund and other LINE Financial Services Inc. assets as at December 31, 2019. ** Formerly a division of Liquid Capital Corp. Figure quoted is since the inception of Liquid Capital Corp. in 1999.

A p p e n d i x

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Key Garrington Management Team Members

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Brian Center serves as the President and Chief Executive Officer of Line Financial Services. Prior to working with the Line Financial team, Brian spent almost 10 years with Far West Capital culminating in his role as President and Chief Credit Officer. In 2002, Brian was the co-founder and President of Comresco Capital, LLC, a factoring company that was sold to Bibby Financial. Brian has also served in a number of senior management roles in the commercial finance and banking industry and has served on a number of industry and community boards. With over 30 years of experience in the financial sector, Brian uses his passion for working with and growing small and mid-sized businesses to create a value added consultative affiliation with his clients, stakeholders and teams. Brian graduated with honors from Texas Tech University with a Bachelor of Business Administration in

• Economics. Brian was selected as and is a member of Omicron Epsilon Delta society honoring esteemed

academics and performance in the field of Economics. In addition to his duties at Line Financial, Brian also serves as President of Liquid Capital Enterprises and it’s various subsidiaries and as a principal advisor to the Next Edge Capital Corp. Rick Coles, Vice President and General Counsel, likes the challenge of the evolving, multifaceted role he fills at Line Financial. As General Counsel, he advises the company on any and all legal matters (projects, products, agreements, etc.) and is involved in instructing any outside counsel that is retained. His focus is

• n ABL (asset-based lending), where transactions often go beyond straightforward factoring solutions. Rick

was in private practice from 1986 until getting into the ABL field in 2012. Rick has a BA and MBA from the University of Toronto and received his law degree from the University of Western Ontario.

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Key Garrington Management Team Members

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Jamie Franz has over 30 years of experience in senior management, investment management, sales management and loan origination for both commercial and consumer banking, asset-based lending and

• factoring. As President of Blacksail Capital Partners (US) his main role is to build and manage the asset-

based lending business which is something that he has done over the last 18 years at other institutions. Prior to joining Blacksail, Jamie was a Managing Director at Ares Management, a $121 billion fund manager based in New York. He was a Regional Manager responsible for the Northeast, Midwest and Canada for Ares Commercial Finance, an asset-based lending fund. Jamie sat on both the Management Committee and the Investment Committee and helped grow the fund from $150 million to over $1 billion in less than four years. Prior to that he was a Partner at Keltic Financial Services, a small to midsize asset-based lending firm which Ares purchased in 2014. Jamie has also served in a number of senior management roles in banking with both Citigroup and M&T Bank. He started his career at Pricewaterhouse Coopers after graduating from St. Bonaventure University with a BA in Accounting. Tammy Kemp serves as a Chief Credit Officer of Garrington Group of Companies. For almost 25 years, Tammy Kemp has honed her experience in all aspects of credit management, with a focus on strategically growing loan portfolios and preserving capital through front-line risk assessment and mitigation. In Tammy’s role of Chief Credit Officer at Garrington Group of Companies, she and her team are responsible for overseeing the company’s entire stakeholder portfolio from a risk perspective. Prior to her work at Garrington Group of Companies, Tammy held senior roles in Canadian alternative and boutique asset based lenders — including Director, Risk and Vice President.

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Key Garrington Management Team Members

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Vince Mancuso is the President of IdentiQ Finance and leads the US portfolio development strategy, focusing on improving asset growth, client retention, and companywide efficiencies. Vince has spent his entire career in commercial finance, in all facets of the industry, beginning with Relationship Management, and for the last 15 years in Executive Management, growing and leading high performance teams. Vince regularly consults for the World Bank, in conjunction with United Nations’ initiatives; providing training and guidance to emerging economies in historically poverty stricken areas of the world. Vince continues to serve and preserve the commercial finance industry by volunteering for the Commercial Finance Association, and has held a variety of positions within their organization, including Past Executive Committee Member, and current Educational Committee Member and a Mentoring Committee Member. With over 25 years of commercial finance experience, Vince brings expert insights and a collaborative, forward-looking approach. John Levac, President of Blacksail Capital Partners (Canada), has an extensive background in corporate finance which includes; asset based lending, distressed debt/CCAA restructuring, real estate, and leasing. In addition to the 20 years in corporate finance, John has spent the last five years in senior roles as an asset advisor for appraisals, auction and liquidation services. His positions included senior roles at RBC Capital Markets, Wells Fargo Foothill, Director of Canada for Gordon Brothers and Accord Financial prior to joining Blacksail. John is a graduate of Laurentian University with an Honors Bachelor of Commerce degree, with concentrations in Finance and Accounting. Mr. Levac is an active member of the Turnaround Management Association (TMA – Toronto Chapter) and the Association for Corporate Growth (ACG).

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Key Garrington Management Team Members

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Robert Thompson-So serves as Executive Vice President and Chief Strategy Officer of Line Financial. In the financial services industry since 1992, Robert brings to Line Financial a background in capital markets, restructuring, mergers/acquisitions, and investment advisory—all areas that contributed to his interest in alternative investment and financing. During his career in the investment advisory industry, Robert earned various designations including the Chartered Investment Manager (CIM) and was a Fellow

• f the Canadian Securities Institute (FCSI.)

Active in the trade finance and asset-based lending industry since 2006, Robert fills a major organizational role, working within the executive team and with the board of directors to help identify, plan and execute strategic initiatives across the various lines of business. His main roles include capitalization, marketing/sales, structuring, developing new markets, M&A initiatives amongst others. Robert also spends a large amount of time dedicated to early stage review of transactions for existing clients and strategic funding partners. In addition to his duties at Line Financial, Robert also serves in various officer and director capacities at Liquid Capital Enterprises and its subsidiary and related companies. Sol Roter is the current Chairman of Liquid Capital Enterprises, responsible for key decisions related to underwriting, credit, growing the principal network and overall strategy. More than that, as a founding shareholder, Sol has been a dedicated driving force behind the company’s success since 1999. Along with helping establish Liquid Capital, he has spent more than 40 years as an entrepreneur and a leader in working capital finance and real estate restructuring.

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Key Garrington Management Team Members

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David Weinstein serves as a Chief Credit Officer at Blacksail Capital Partners and IdentiQ Finance. David also assists in overseeing the credit and operational functions at Line Financial and contributes to our

• verall strategic vision.

Before joining Line Financial, David was a principal and senior underwriter for Ares Commercial Finance, a unit of Ares Management LLC. Previously, he was the managing partner of a boutique investment banking and advisory firm, Lakeside Advisors, and a prior to that, a partner in the management-consulting firm of Morris Anderson & Associates. David also served in senior management and leadership positions with Congress Financial Capital and CIT Group Inc. In addition to his corporate experience, David is the immediate past president of the Connecticut Turnaround Management Association and a past president of the New York City chapter of the Turnaround Management Association. He is a frequent panelist on industry issues and is currently an adjunct faculty member of Pace University’s Lubin School of Business teaching finance.

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Key Next Edge Private Debt LP Management Team Members

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Erica Axani is the Chief Risk Officer for Next Edge Capital and helps to manage all credit, risk, and underwriting within Next Edge’s private lending platform. She also plays a key role in the day-to-day monitoring of our Next Edge Private Debt Fund portfolio, as well as that of any of our underlying credit platforms. Prior to joining Next Edge, Ms. Axani had spent close to 20 years in the factoring and asset based lending industry, with a focus on specialty lending. She has held positions as Chief Accountant, Senior Account Manager, Assistant Vice President and Chief Underwriter, on behalf of a large Canadian institution which specializes in these areas. Robert Anton is a Managing Director, founding partner and Head of Sales and Product Development for Next Edge Capital. Prior to the formation of Next Edge Capital via a management spin-out of the business,

• Mr. Anton was the Executive Vice President, Sales for Man Investments Canada, responsible for the

distribution of the firm’s hedge fund products through various channels and joint venture relationships in

• Canada. Robert began employment with Man in March of 2006 to aid in the set up of the Canadian office.

Robert was also active as a member of the Man Canada charity board in addition to sitting on outside charity committees. Prior to joining Man, he held the position of Executive Vice President, National Sales Manager of BluMont Capital, a Toronto-based hedge fund company. Having joined the company in 2001 as a start up operation, the company saw significant asset growth until his departure in 2006. In 1993, Mr. Anton entered the financial business joining Richardson Greenshields and shortly thereafter became an Investment Advisor. He continued his Investment Advisor role at RBC Dominion Securities and Goepel McDermid Securities. In 1991 Robert earned his Bachelor of Arts degree from Wilfrid Laurier University in Waterloo. He also holds a Chartered Alternative Investment Analyst (CAIA) designation, has been an instructor for the Canadian Securities Institute and taught the Due Diligence on Hedge Funds course from 2007 to 2009.

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Key Next Edge Private Debt LP Management Team Members

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Richard Goode is an Executive Vice President of Next Edge Capital, focusing on Sales and Marketing supporting for the Canadian retail financial advisor channel and family offices. Prior to joining Next Edge Capital, Mr. Goode was a Managing Director and Head of Sales at Ninepoint Partners/Sprott Asset Management, a leading independent asset manager. During Mr. Goode’s six years with Ninepoint Partners/Sprott Asset Management, he led a team of over 25 sales and marketing professionals, assisting in the raising of over $3 billion in alternative investments by working with Canadian retail Financial Advisors to position complex alternative investment strategies within their clients’ portfolios.

• Mr. Goode began his financial career at BluMont Capital Corp. in 2000. Mr. Goode held numerous positions

in the sales and marketing departments of BluMont Capital Corp. from 2000 to 2013 culminating in his appointment as National Sales Manager in 2006, a position which he held until 2013.

• Mr. Goode holds a Bachelor of Arts degree from the University of Windsor.

Cheng Dang is the Executive Vice President of Finance for Next Edge Capital. Cheng is responsible for financial management, planning, internal and external reporting, and tax compliance of the company and its funds, internal controls, and alongside the COO, David Scobie, operations and compliance. Cheng is also closely involved in product structuring, risk management, and the overall strategic direction

• f the firm with the executive management team.

Cheng is a Chartered Accountant and Bachelor of Commerce graduate from the University of British

• Columbia. Prior to the formation of Next Edge Capital, Cheng was the Controller for Man Investments

Canada Corp. and had a broad range of financial responsibilities for the Canadian office of Man Group plc. Cheng has had a diverse range of experience in public practice, industry and entrepreneurship. He started his career with Deloitte Vancouver, coming to lead engagements for public and private companies in a variety of industries. Following this he started and ran two successful fast food franchises before returning to industry in senior financial (Controller) roles.

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Key Next Edge Private Debt LP Management Team Members

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Toreigh Stuart is the Chief Executive Officer for Next Edge Capital. Toreigh’s main role is assessing and structuring investment opportunities with a focus on ideas which emphasize increased risk-adjusted returns with low levels of correlation to traditional stocks and bonds. Prior to the formation of Next Edge Capital via a management spin-off of the business, Mr. Stuart was the Chief Executive Officer of Man Investments Canada Corp. Subsequently, Mr. Stuart held the position of President and Chief Executive Officer of BluMont Capital, a Toronto-based hedge fund company.

• Mr. Stuart earned his Bachelor of Arts degree in Economics from University of Toronto, and is a Chartered

Financial Analyst. Toreigh has more than two decades of selecting and monitoring investment managers and his current passion is the vast opportunity that lies within the private lending sector. David Scobie is a Managing Director, founding partner and Chief Operating Officer for Next Edge Capital

• Corp. (Next Edge Capital). David is responsible for the day to day operations of the firm. Prior to the

formation of Next Edge Capital via a management spinout of Man Investments Canada Corp. (MICC), Mr. Scobie was a managing director and a director of Man Investments Canada Corp. (MICC), and was responsible for the day to day operations of the Canadian office of Man Group plc. Mr. Scobie joined MICC in 2009. Prior to joining MICC, Mr. Scobie held numerous positions from 2000 to 2009 in the sales, operations and client service departments

• f BluMont Capital Corp. culminating in his appointment as a managing

director in 2005 and as the Chief Operating Officer and a director in 2007. Prior to joining BluMont Capital Corp., Mr. Scobie spent five years with the Toronto-Dominion Bank Financial Group. Mr. Scobie has a B.A. and a B.Ed. from Acadia University.

CONTA TACT

For more information please contact: Email: info@garringtonco.com Website: garringtongroupco.com