Fintech
Mount Logan Capital Inc. Letter to Shareholders
Toronto, Ontario–(Newsfile Corp. – May 11, 2020) – In response to the continued uncertainty and unprecedented impact that the COVID-19 global pandemic is having on both the financial markets and economies around the world, Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan” or the “Company”) is providing an update to all of our stakeholders. As always, but especially in times like these, we hope all our stakeholders, including shareholders, lenders, portfolio companies, and advisors, are healthy and safe. Please note that we continue to vigilantly monitor this continually evolving situation and have implemented steps to keep our team safe while ensuring full business continuity. All amounts in this letter are stated in United States dollars, unless otherwise indicated.
While we anticipate a challenging economic climate in the coming quarters, we believe stakeholders should take comfort in the ability of Mount Logan’s management team to navigate a period of dislocation and stress such as this. Additionally, while the current market conditions are not something that could have been predicted or anticipated, economic cycles and capital markets dislocations have always existed and will continue to exist even after the economy has recovered from the effects of COVID-19. Our credit investment organization was built, and its investment professionals hired, to invest across all economic and credit market cycles. Senior members of Mount Logan’s management team have experience managing assets through multiple credit cycles at best-in-class institutions.
In addition to our management team, we believe Mount Logan is well-positioned to face the current period of uncertainty for the following three key reasons:
-
Diversified Portfolio
-
Defensive Sectors
-
Liquidity, Funding Profile, and Capital
Diversified Portfolio1
As of March 31, 2020, our investment portfolio consisted of 16 unique investments and an average exposure per borrower of $3.1 million (based on March 31, 2020 fair market value, excluding our investment in the BCP Great Lakes Unitranche Joint Venture). All of our borrowers have paid their interest and principal that was due as of March 31, 2020. Our portfolio remains heavily concentrated in first lien senior secured debt. As of March 31, 2020, approximately 80% of our portfolio (based on March 31, 2020 fair market value) consisted of first lien senior secured debt. We have purposely constructed our portfolio to focus on first dollar risk precisely to be positioned well when times of economic stress do arise.
With respect to our exposure to the BCP Great Lakes Unitranche Joint Venture, this represents approximately 14% of our portfolio (based on March 31, 2020 fair market value). This exposure is underpinned by a portfolio of first lien senior secured unitranche loans, diversified across 11 middle market borrowers in a variety of stable industries. Taken together, as at March 31, 2020, approximately 94% of our portfolio (based on fair market value) is in first lien senior secured debt and in our joint venture underpinned by first lien debt.
Defensive Sectors
While the long-term impacts remain uncertain, it is important to note that Mount Logan has no direct exposure to most of the sectors that will or are expected to face immediate impacts. Excluding Cline, which we had previously structured as a contingent value right and hence involves no net balance sheet exposure, we do not have direct exposure to sectors such as automotive, energy, metals and mining, hotel, casinos and leisure, advertising, restaurants, airlines, and cruise lines. Based on fair market value as of March 31, 2020, our largest sectors of exposure are industrials, representing approximately 27% of our investment portfolio, and consumer, representing approximately 20% of our investment portfolio. Amongst the investments in these respective sectors, each investment has diversified exposure to a variety of end-markets and was underwritten with the aim of enduring severe economic stress.
Liquidity, Funding Profile, and Capital
With the renewal of Mount Logan’s Revolving Senior Loan Facility (the “Leverage Facility”) in January 2020, our $50 million Leverage Facility now matures in February 2021. While certain peers have faced issues with their leverage facility providers, we are pleased with the terms and flexibility of our existing Leverage Facility. As of March 31, 2020, Mount Logan has drawn $34.4 million on the Leverage Facility and the remaining $15.6 million of potential borrowing capacity could be accessed upon the Company meeting certain borrowing base requirements. As of March 31, 2020, we had approximately $8.9 million of cash, a majority of which is committed to supporting the borrowing base for our Leverage Facility. As previously reported, we declared a CAD$0.02 dividend per share that was paid on April 28, 2020, and on May 11, 2020, we declared another dividend of CAD$0.02 per share to be paid in June 2020. We remain focused on balancing adequate liquidity for our ongoing company operations while also deploying capital in attractive investment opportunities that have been created as a result of the market dislocation.
With respect to unfunded commitments in our portfolio, as of March 31, 2020, we had limited exposure with approximately $2.9 million of unfunded commitments, none of which are revolving credit facilities. Approximately $1.0 million of that exposure consists of delayed draw first lien term loans to three separate portfolio companies and approximately $2.0 million is an unfunded commitment to the BCP Great Lakes Unitranche Joint Venture. Across all of the unfunded commitments to which we have exposure, there are restrictions on the underlying companies’ ability to fund driven by leverage levels at the underlying borrowers and the use of proceeds. Overall, we believe that the various restrictions in our unfunded commitments will result in very limited demands of unilateral funding by our portfolio companies and if they do fund, we believe that we have adequate liquidity and assets in order to meet any such requirements. Overall, we are proud that Mount Logan’s existing structure and permanent capital enabled us to continue to hold our investments and did not force us to sell any investments at a material discount to par when the dislocation began in March 2020.
Conclusion
We will continue to remain vigilant around monitoring our existing investments, and we will continue to actively evaluate additional new investments that present an immense opportunity amid the recent market volatility. While we understand and appreciate that the long-term impacts of COVID-19 are uncertain, we believe that Mount Logan’s investment portfolio and balance sheet are positioned defensively and that our management team will continue to take steps to protect stakeholder value and continue to drive value through opportunistically deploying capital in the current environment. We will continue to work hard for all our stakeholders and look forward to maintaining our dialogue with you during this period.
On behalf of our entire team, thank you for your support and please stay safe and healthy.
Sincerely,
Ted Goldthorpe
Chief Executive Officer and Chairman of the Board
About Mount Logan Capital Inc.
Mount Logan Capital Inc. is a Canada-based asset manager created to source and execute on credit investment opportunities in North America. The Company holds and actively manages and monitors a portfolio of loans and other investments with credit-oriented characteristics. The Company intends to actively source, evaluate, underwrite, monitor, and primarily invest in additional loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.
Cautionary Statement
This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions “seeks”, “expects”, “believes”, “estimates”, “will”, “target” and similar expressions. The forward-looking statements are not historical facts, but reflect the current expectations of the Company regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this release include, but are not limited to, statements relating to the Company’s business strategy, model, approach and future activities; its future investment portfolio construction and concentration; future funding demands and ability to meet such demands; any future dividends on the Company’s shares; and the Company’s ability to deliver returns to shareholders. All forward-looking statements in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, the Company can give no assurance that the actual results or developments will be realized by certain specified dates or at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under “Risks Factors” in the most recently filed annual information form and management discussion and analysis for the Company. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.
This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities in the Company or in any fund or other investment vehicle.
For additional information, contact:
Ted Gilpin
Chief Financial Officer
[email protected]
(212) 891-5007
Mount Logan Capital Inc.
365 Bay Street, Suite 800
Toronto, ON M5H 2V1
1 All figures exclude the Company’s legacy investment in Cline Mining Corporation (“Cline”), which is subject to the contingent value rights issued by the Company to the holders of the common shares of the Company prior to its plan of arrangement completed in October 2018.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55702
Doo Group’s brokerage brand, Doo Financial is thrilled to announce its expansion into Indonesia by acquiring a reputable Indonesian broker to expand the business. This move brings its global investment services to local investors. Backed by the strength of Doo Group’s extensive international presence, cutting-edge technology, and 10 years of expertise, Doo Financial is well positioned to support investors at every level.
As a brand encompassing investment services offered by various legal entities within the Doo Group, Doo Financial provides a comprehensive range of global brokerage services. This wide range of products empowers investors to pursue their financial goals.
With a diversified portfolio, Doo Financial empowers investors to navigate various market conditions effectively, manage risks, and focus on long-term growth. This entry into the Indonesian market reflects Doo Financial’s commitment to supporting investors with flexible, high-quality investment options tailored to today’s dynamic financial landscape.
Supervision by International Regulatory Institutions to Ensure Top-Tier Safety
As a global leading finance group, Doo Group has licensed entities regulated by top regulatory authorities worldwide, ensuring a secure and reliable trading environment.
Our global credentials include licenses from the U.S. Securities and Exchange Commission (US SEC), the Financial Industry Regulatory Authority (US FINRA) in the U.S., the Financial Conduct Authority (UK FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Hong Kong Securities and Futures Commission (HK SFC), Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) in Indonesia. These licenses enable us to provide secure and reliable financial services globally.
Dedication to Shape the Industry with Innovative Solutions
Doo Financial’s expansion into Indonesia brings advanced technology and a global perspective to empower local investors. As an international investment firm committed to secure and seamless trading, Doo Financial offers a diverse range of products and services to help diversify portfolios and open up new opportunities.
This growth elevates opportunities for Indonesian investors by offering seamless access to global markets and advanced trading platforms within a secure and regulated environment. It broadens investment choices and enhances the trading experience, aligning it with international standards and empowering local investors with comprehensive tools and resources for success.
Driven by unwavering commitment, this growth marks a significant milestone in Indonesia’s investment landscape, equipping our clients with the tools to navigate global markets. We remain dedicated to delivering exceptional service, exploring new opportunities, and driving future breakthroughs. With continued support from the FinTech community, we are excited to innovate and shape the future of finance.
Stay updated with the latest insights from Doo Financial. Join our community of empowered investors and let us be your trusted partner!
E-mail: [email protected]
The post Doo Financial Now in Indonesia: Offering Local Investors A Gateway to Global Markets appeared first on .
Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
In this edition of Fintech Pulse, we delve into groundbreaking announcements from the 2024 Hong Kong Fintech Week, spotlight strategic collaborations fostering financial accessibility, and examine significant profit growth in global fintech companies. Here’s our comprehensive breakdown of the latest happenings in fintech.
1. Bairong’s Full-Scenario AI Products Showcase at Hong Kong Fintech Week
Source: PRNewswire
At the 2024 Hong Kong Fintech Week, Bairong showcased its range of AI-driven solutions designed to support the digital transformation of financial institutions. Their new “full-scenario” suite aims to enhance data analysis, financial risk management, and credit scoring. The offering underscores Bairong’s strategic vision to advance financial decision-making with AI technology that serves a variety of sectors, including banking, insurance, and asset management.
This development aligns with broader industry trends emphasizing the power of AI to bridge operational gaps in traditional finance. Bairong’s solutions promise to optimize financial workflows, identifying high-risk factors in real-time. The commitment to developing comprehensive, adaptable AI tools demonstrates Bairong’s ambition to stay at the forefront of AI-powered fintech innovations.
2. SBI and APIX Establish Innovation Hub to Propel Fintech Partnerships
Source: The Paypers
SBI Holdings, Japan’s major financial services group, recently announced the launch of an Innovation Hub in partnership with APIX to advance fintech collaboration and innovation. The hub will serve as a catalyst for startups and financial technology firms to collaborate, leveraging APIX’s open innovation platform for API exchange.
Through this hub, SBI and APIX aim to address critical technological needs in the fintech sector. Startups and established firms can collaborate on new technologies and bring forward interoperable systems for the industry. This initiative marks a new phase in fintech alliances, where regulatory support and open innovation can accelerate fintech growth on a global scale.
3. Wise’s Record Profits Point to Growing Market Dominance
Source: MSN
British fintech giant Wise reported a 55% surge in profits, driven by an expanding customer base and increased market share. The company’s cross-border payment solutions are seeing widespread adoption, as it provides individuals and businesses with affordable currency exchange options, bypassing high fees associated with traditional banks.
Wise’s success underscores the current demand for transparent, low-cost international payments. As the firm continues to focus on product expansion and market penetration, its financial trajectory showcases how fintech firms can challenge the status quo in cross-border transactions, maintaining profitability while serving a rapidly growing user base.
4. Parker Secures $20 Million Series B Funding for Fintech Data Suite
Source: Forbes
Fintech startup Parker raised $20 million in a Series B funding round, with the goal of expanding its suite of financial data tools. Parker’s product range enables small and medium enterprises (SMEs) to gather and analyze data, facilitating more informed financial decisions. This funding reflects investor confidence in the need for specialized financial data tools tailored to SMEs, a sector often underserved in financial innovation.
By addressing the needs of smaller businesses, Parker is positioning itself as a key player in the niche market of financial data, which has typically been dominated by larger corporate-focused platforms. This funding round highlights the growing trend of venture capital backing for niche fintech solutions aimed at smaller, agile businesses.
5. The Payments Group and HubPeople’s Cash Payments Initiative for Online Daters
Source: PRNewswire
The Payments Group, a digital payments solution provider, announced a collaboration with HubPeople, an online dating platform, to integrate cash payment solutions for over 100 million users globally. This partnership aims to reach users who may not have access to traditional banking or prefer alternative payment methods.
The initiative points to the broader trend of payments inclusivity in fintech, whereby payment firms are making financial transactions more accessible for underserved communities. By integrating cash payment solutions, The Payments Group and HubPeople highlight the importance of flexibility in payment options, acknowledging the diverse financial preferences of users worldwide.
Industry Implications and Observations
These stories collectively reveal several key trends and insights about the evolving fintech landscape. The focus on AI, digital collaboration hubs, profitability through transparency, specialized data tools, and inclusive payment solutions are reshaping financial services. Fintech’s current trajectory indicates a robust push towards not only digital transformation but also inclusivity and global accessibility.
As financial technology continues to innovate, these advancements illustrate the increasing overlap between technology and finance, as well as the potential for fintech to foster inclusive growth. With companies like Bairong and Wise setting benchmarks for AI and cross-border payments, respectively, and emerging startups like Parker developing new, data-centric tools, fintech’s future promises a dynamic shift towards improved service and enhanced user engagement.
The post Fintech Pulse: Industry Innovations and Partnerships Drive Global Fintech Forward appeared first on HIPTHER Alerts.
-
Fintech4 days agoFintech Pulse: Industry Innovations and Partnerships Drive Global Fintech Forward
-
Fintech3 days agoFintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation
-
Fintech PR7 days agoConverge Technology Solutions Named Solution Partner of the Year at the 2024 Ingram Micro ONE Innovation Summit
-
Fintech PR7 days agoManulife Investment Management aligns capabilities across regions under the newly created role of Global Emerging Market Equities CIO
-
Fintech PR7 days agoBybit and Block Scholes Uncover Post-Election Bullish Sentiment: Traders Lean Into Leveraged Longs Amid Stabilized Market
-
Fintech PR7 days agoPalm Jebel Ali Project Surges Ahead in 2024: Milestones Achieved in Record Time for Dubai’s Most Anticipated Development
-
Fintech PR7 days agoThe Trade Facilitation Commission release their report entitled ENSURING ECONOMIC GROWTH
-
Fintech PR6 days agoStatement From Universal Music Group N.V.