April Fund Commentary

Fund Commentary – April

The Coral Cove Private Credit Fund (the “Fund” ) returned 0.87% (Class I Units) in April.  Annualized returns since inception (January 2021) are 9.63%

Fund Insights

• The Fund’s underlying portfolio (the “Portfolio”)  has exposure to approximately 53 factoring, asset-based, equipment finance, lender finance, specialty finance, or similar type loans. Presently, the geographic weighting of the Portfolio is approximately 64% to the US and 36% to Canada. Of these positions, the largest portfolio weights are 41% to factoring, 32% to lender finance, and 11% to asset-based loans.
• We are seeing continued solid performance and growth, particularly on the factoring side.
• Our deal activity remains strong with us providing 8 term sheets in April, resulting in a busy May.

News from our account management team

• Last year we provided our client with a senior secured revolving facility and term loan to an Illinois-based integrated brass mill. We recently agreed to extend the maturity date for the facilities and, in addition added a term loan (as the existing term loan had been repaid as agreed). The extension of the facility and the addition of the new term loan will allow the company to fulfill a significant pipeline of orders for a new product line.
• A traffic control company based in Ontario was granted a secured revolving facility and term loan. We have now extended these facilities for the fourth consecutive term. This extension will allow the company to complete a strategic business merger, which will result in a significant expansion of its geographic reach and fleet size.
• We have extended a mezzanine credit facility to a portfolio of secured consumer auto loans. The borrower has been executing their business plan strategically, which is why we agreed to extend the facility further.
• A New York-based company that acquires and manages properties has been granted a senior secured revolving facility, which has been renewed for another term. The company is using this facility to execute its business strategy and acquire more properties as agreed.

The Garrington team is proud to be able to assist our clients in these ways, helping them reach their goals while providing cost-effective solutions for their business needs. We are always pleased when we can retain clients while helping them reach new heights in their business ventures.