New fund aims to raise an initial $100 million to meet demand for private capital in commercial mortgage space
Cameron Stephens – a non-bank mortgage lender that operates in Ontario, Alberta, and British Columbia – has launched a $100-million private placement offering on DealSquare for a new mortgage fund.
The Cameron Stephens High Yield Mortgage Trust (CSMT) invests in a wide range of asset classes, but focuses on using Cameron Stephens’ expertise in the residential land, development, and construction sectors.
Developed in response to growing demand for private capital in the commercial mortgage space, CSMT currently invests in Ontario, Alberta, and British Columbia, with a target of expanding into the US in support of the company’s future growth strategy.
“Our goal is to raise $100 million in CSMT initially, and increase the Fund to $300-$500 million over the next several years to keep pace with Cameron Stephens’ strong origination growth,” said Cameron Stephens Chairman and CEO Scott Cameron. “Listing on DealSquare, powered by NEO, will allow CSMT to access the retail advisor network, which is critical to the Fund’s growth trajectory.”
With $1.6 billion in AUM – including $1.1 billion in institutional capital and $500 million in private capital – Cameron Stephens claims to be the leading non-bank lender for commercial mortgages, construction loans, and land loans in Canada. Through proprietary private capital and strong institutional relationships, it’s able to offer borrowers creative and timely financing solutions to address their complex needs. It reports a track record of average net loan losses amounting to just 0.11% of the portfolio on an annualized basis since inception.
“We are proud to have Cameron Stephens as a leading private commercial mortgage lender on our platform,” said DealSquare Managing Director Peter-Paul Van Hoeken. “Mortgage-backed investments offer attractive cash flow, generating returns to investors.”
“This listing is truly a win-win situation,” added Jos Schmitt, president and CEO of NEO. The DealSquare platform, was formed as a joint initiative between Silver Maple Ventures and NEO, whose technology powers DealSquare.
“By launching their capital-raising campaign on DealSquare, the CSMT gains exposure to an investor audience that was previously untapped by the organization, while those investors gain access, in a seamless way, to a unique investment opportunity that would have otherwise been unavailable,” Schmitt said. “It is all about making the private markets a better experience for everyone.”