Canada’s Next Edge gates and winds down private credit fund
Canadian alternative asset manager Next Edge Capital is winding down its flagship private credit fund and has halted investor redemptions.
The Next Edge Private Debt Fund, which is purely open to Canadian retail investors, allocates to a diversified portfolio of trade finance, factoring and secured loan investments.
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An investor memo, seen by The Globe and Mail, revealed that the fund received C$145m (£82.9m)-worth of redemption requests in 2023 – almost half the fund’s C$298m of assets under management – following a dip in performance.
Redemption requests have continued this year, the report said, and currently sit at 20 per cent of total assets.
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“Effective as of 30 April 2024, no further redemption or purchase orders will be accepted on any of the existing classes of the Next Edge Private Debt Fund,” a Next Edge spokesperson told Alternative Credit Investor.
“The existing fund portfolio will be wound up and paid back to all fund unitholders in an orderly basis as liquidity is realized within the fund’s portfolio from loan repayments, by way of the issuance of units in new classes of the fund that can be sold or held as desired. These new fund units will follow a similar investment mandate to the existing fund but will have exposure to a portfolio with enhanced liquidity.”
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