Competitive Advantages

EXPERIENCED, REPUTABLE MANAGEMENT:

The Fund Manager’s team of professionals have founded and built a full-service asset management platform that has the capacity to underwrite, finance, acquire and manage assets that fit the investment profile and mandate of its managed funds.

The Mortgage Manager’s team are well known in the private real estate lending market across Canada and source potential opportunities through an extensive network of mortgage brokers who have an in-depth knowledge of mortgage underwriting and finance structuring.

ALIGNMENT OF INTEREST:

Mortgage Manager is compensated exclusively through a performance fee based on the financial performance of the Fund, which is designed to align the Mortgage Manager’s interest with those of the Fund and the Shareholders.

Mortgage Manager is obligated to present to the Fund any loan originated by the Mortgage Manager that meets the investment objective of the Fund and may not invest directly in or make available for investment to any other person any loans that fits the Fund’s investment objective without first offering such investment opportunity to the Fund.

STRATEGIC PARTNERS:

Warehouse Partner

The Fund will initially have warehouse funding agreements with two warehouse partners representing approximately $24 million in non-committed warehouse funding (KingSett Capital and Forsgate Funding Corporation). The warehousing arrangements are expected to:

	(i)	permit the continuous deployment of capital;
	(ii)	avoid a reduction of returns associated with delays in the deployment of equity capital that needs to be raised to fund a mortgage investment; and
	(iii)	maintain a rigorous, two-tiered credit analysis, with the Warehouse Partners performing their own additional review of the merits of mortgage loans funded by them.

Lending Partner

TAMI has developed a relationship with a federal trust and loan company regulated by the Office of the Superintendent of Financial Institutions that holds the Senior Position on a number of syndicated mortgages that are currently held in the Seed Portfolio. Alignment with well-capitalized lending partners that seek similar investment opportunities is intended to allow the Fund to source larger mortgage loans while maintaining the Fund’s higher yield objectives.

RETURNS ENHANCED BY ADDITIONAL SOURCES OF REVENUE:

In addition to the yield earned by the Fund on Mortgage Assets, the Fund will also earn revenue from the mortgage loan origination and placement activities directly or indirectly carried on by the Mortgage Manager.

The Mortgage Manager is obligated to remit to the Fund all mortgage origination and placement fees generated in connection with mortgage loans funded by the Fund.

RISK MANAGEMENT

The Fund has adopted an Asset Allocation Model that is focused first on capital preservation and, second, on the achievement of the Fund’s investment objective and targeted returns. The Asset Allocation Model of the Fund sets specific thresholds that are regularly monitored and that must be complied with at the time of issuance of every mortgage loan investment commitment.