When it comes to financing acquisitions, Hovdale takes a different approach than other private equity firms. Instead of relying on limited partnership funds, we employ a mix of fresh capital from individual investors, buyout funding from banks, and other institutional sources. Term loan investors at Hovdale may enjoy competitive returns, thanks to our one-of-a-kind acquisition approach.
In order to raise funds for investment, Hovdale issues high-yield debentures to accredited investors. Our investors sign a loan contract with Hovdale for a time horizon of 1-5years. As part of the loan arrangement, Hovdale agrees to pay investors monthly interests via a series of post-dated cheques. Our loans are unique in that they are backed by all of the businesses in our portfolio, which greatly reduces the overall risk profile compared to standard corporate financing where loans are arranged between individual companies and investors.
The terms of the loans are fixed. On the maturity date, investors will receive the full amount of the principal invested; the loan’s value remains fixed. In the same vein, the annual interest rate that becomes due on the loan is fixed at the time the contract is signed and subsequently paid in equal monthly installments, thereby affording investors guaranty for the specified period.
Hovdale is capable of allocating the funds acquired towards the acquisition and operation of businesses, real estate and infrastructure assets thereby affording investors attractive risk-adjusted returns, in contrast to other fixed-income offerings which yield minimal annual returns. Furthermore, this enables us to furnish our investors with a steady stream of monthly cash flow.
However, by investing with Hovdale, investors can take advantage of a diversified portfolio of companies that guarantees their funds at competitive interest rates.
If you are an accredited investor as defined by Ontario securities laws and have an interest in investing, kindly proceed by clicking here.
It should be noted that the content of this website does not represent an offer to invest in Hovdale or to the general public to purchase securities of any kind.