~Assets under Management and Administration
grows 230% from $149 million
($125 million in Total Assets) in
2021 to $492 million in 2022 on the
back of strategic acquisitions~
VANCOUVER, BC, Feb. 7, 2023
/CNW/ - Montfort Capital Corporation ("Montfort" or the
"Company") (TSXV: MONT) (OTCQB: MONTF), a leading alternative
lender utilizing focused strategies, experienced management teams
and advanced technology, is providing selected preliminary
unaudited results for its fiscal year ended December 31, 2022. Montfort is pleased to report that its Assets
Under Management and Administration ("AUMA") have grown to
$492 million as at December 31, 2022 from $149 million in AUMA and $125 million in total assets as at December 31, 2021. AUMA includes assets under
management plus loans managed on behalf of third
parties.1
_____________________________
1"Assets
under management and administration" and "assets under management"
are non-GAAP financial measures. Refer to "Cautionary Note on
Non-GAAP Financial Measures" section of this release for additional
details.
|
The year-over-year increase in AUMA is due to the successful
acquisition of Brightpath Capital Corporation ("Brightpath") in
August 2022, and 78% of Langhaus
Financial Partners Inc. ("Langhaus") in October 2022. When combined with Pivot Financial
Inc. ("Pivot"), acquired in September
2021, and TIMIA Capital ("TIMIA")
AUMA have grown to $492
million.
"Montfort's brand and integrated investment strategy as a
leading innovator in specialty private credit leapt forward in
2022," said Mike Walkinshaw, CEO of
Montfort. "We've added significant
scale and lending power to Montfort through our business model of
combining seasoned management teams, advanced technology, and
focused origination strategies. Given the current lending
environment, we're excited about Montfort's opportunity to maximize its success
in 2023."
For further background on Montfort's planned reporting schedule, the
Company will divide its private credit businesses into two
respective segments: corporate lending, which includes TIMIA and
Pivot, and consumer lending made up of Brightpath and Langhaus.
Corporate lending is focused on providing innovative private
credit to small and medium sized corporations. TIMIA offers
revenue-based investment to fast growing, business-to-business
recurring revenue software businesses in North America. Pivot concentrates on creative
financing solutions for the small and medium business market
throughout Canada. Montfort's corporate lending segment closed
out 2022 with over $127 million of
AUMA.
Consumer lending is focused on real-estate and insurance backed
lending and adds $365 million of AUMA
to Montfort's consumer loan
portfolio.
Brightpath is one of Canada's
leading private providers of residential mortgages focused on
Ontario and British Columbia. It specializes in arranging
mortgages for people who are self-employed, new to the country,
experiencing credit issues, or looking at renovation/flip projects.
It also offers private mortgages and bridge financing for
residential properties with competitive and flexible terms.
Langhaus is Canada's largest
independent provider of insurance policy backed loans focused on
high-net-worth individuals and entrepreneurs throughout
Canada. It works cooperatively
with Canada's major insurance
companies and top advisers, the Langhaus team designs flexible
lending programs in a way that best meets the needs of borrowers,
with an expertise in structured finance transactions and complex
borrower structures that fall outside the typical purview of
Canadian banks.
Preliminary Unaudited Financial
Information
The financial measures included in this news release are based
on preliminary unaudited estimated results which have not yet been
finalized or audited. These estimated results are subject to change
upon completion of the financial statements for the year ended
December 31, 2022 and the audit of
such financial statements and such changes could be material due
to, among other things, the completion of Montfort's financial closing procedures, final
adjustments, review by the Company's auditors and other
developments that may arise between now and the time the financial
results are finalized. Accordingly, such estimated results are
forward-looking statements (as defined below) within the meaning of
applicable securities legislation and are subject to the
limitations and risks described under "Forward-Looking Statements",
below.
Montfort expects filing its
audited annual financial statements for the year ended December 31, 2022 and related management's
discussion and analysis on SEDAR in late April 2023.
About Montfort Capital
Corporation
Montfort manages a diversified
group of specialized private credit brands that utilize focused
strategies and experienced management teams combined with advanced
technology to improve fee-related performance. Montfort facilitates transparency for all of
its investors through public company reporting. For further
information, please visit www.montfortcapital.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Cautionary Note on Non-GAAP Financial
Measures
This release contains some non-Generally Accepted Accounting
Principles (GAAP) financial measures as defined in National
Instrument 52-112 "Non-GAAP and Other Financial Measures
Disclosure". Terms by which non-GAAP financial measures are
identified include, but are not limited to, "assets under
administration" and "assets under management". Non-GAAP financial
measures are used to provide management and investors with
additional measures of performance to help assess results where no
comparable GAAP (IFRS) measure exists. However, non-GAAP financial
measures do not have standard meanings prescribed by GAAP (IFRS)
and are not directly comparable to similar measures used by other
companies. Investors may find these financial measures useful in
understanding how management views the underlying business
performance of the Company.
Assets under Management and
Administration (AUMA)
Assets under management and administration is a non-GAAP
financial measure that provides an indicator of the size and
volumes of the Company's overall business. Management and
administrative services are an important aspect of the overall
business of the Company and should be considered when comparing
volumes, size and trends. "Total assets" is the most directly
comparable financial measure to AUMA that is disclosed in the
Company's financial statements.
Forward-Looking Information
Certain information and statements in this news release contain
and constitute forward-looking information or forward-looking
statements as defined under applicable securities laws
(collectively, "forward-looking statements"). Forward-looking
statements normally contain words like 'believe', 'expect',
'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may',
'will', 'should', 'ongoing' and similar expressions, and within
this news release include any statements (express or implied)
respecting the future growth of the Company and the Company's
future financial performance.
Forward-looking statements are not guarantees of future
performance, actions, or developments and are based on
expectations, assumptions and other factors that management
currently believes are relevant, reasonable and appropriate in the
circumstances, including, without limitation, the assumption that
the Company and its investee companies are able to meet their
respective future objectives and priorities and assumptions
concerning general economic growth and the absence of unforeseen
changes in the legislative and regulatory framework for the
Company.
Although management believes that the forward-looking statements
are reasonable, actual results could be substantially different due
to the risks and uncertainties associated with and inherent to
Montfort's business. Material
risks and uncertainties applicable to the forward-looking
statements set out herein include but are not limited to: intense
competition in all aspects of business; reliance on limited
management resources; general economic risks; new laws and
regulations and risk of litigation. Although Montfort has attempted to identify factors
that may cause actual actions, events or results to differ
materially from those disclosed in the forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, predicted, estimated or intended. Also,
many of the factors are beyond the control of Montfort. Accordingly, readers should not
place undue reliance on forward-looking statements. Montfort undertakes no obligation to reissue
or update any forward-looking statements as a result of new
information or events after the date hereof except as may be
required by law. All forward-looking statements contained in this
news release are qualified by this cautionary statement.
The reader is cautioned that the foregoing list of assumptions
and factors is not exhaustive, and there may be other factors
listed in other filings with securities regulators, including
factors set out in the Company's 2021 annual management discussion
and analysis under "Financial Investments and Risk", which, along
with other filings, is available for review at www.sedar.com.
SOURCE Montfort Capital Corp.