RiverRock MIC

 

2019 Mid Year Review

Audio commentary - July 10, 2019

Nick Kyprianou, President & CEO, RiverRock MIC gives an update on the mortgage and lending markets for the first half of 2019. RiverRock Management Inc., is licensed as a Mortgage Administrator through FSCO (Financial Security Commission of Ontario). Mortgage Administrator License # 12514. The Corporation and the Administrator have retained Ninepoint Partners LP (“Ninepoint”), to provide exempt market dealer, distribution and marketing services for the Corporation on an exclusive basis.

 

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RiverRock MIC

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5 Reasons to Consider RiverRock Mortgage Investment Corporation (MIC)

1. Better Liquidity

  • Portfolio duration of less than 1 year allows borrower turnover and resetting of terms to accommodate changing market conditions.
  • Max 80% LTV on readily marketable urban/suburban real estate, which is more liquid than commercial real estate.


2. 100% Invested in Ontario Real Estate

  • The portfolio is focused on mortgage loans in Ontario; the most lender-friendly province in the country.
  • Ontario has the lowest number of mortgages in arrears vs other provinces*.

*Source: Canadian Bankers Association.


3. Less Risky Than You Think

  • Second mortgage strategy: Second mortgages can offer higher returns than first mortgages. RiverRock applies a structured investment and risk management process in the pursuit of first mortgage-like risk with second mortgage-like returns.
  • Works directly with borrowers to bring loans back to current status.
  • Conservative loan sizes based on property values appraised by third party, independent appraisers.
  • First Canadian Title insurance mitigates risks of fraud, solicitor errors & omissions, and back taxes.


4. Experienced Management

  • Nick Kyprianou, President and CEO of RiverRock Mortgage Corporation.
  • Over 30 years of experience as a mortgage lender.
  • 18 years leading Home Trust’s mortgage portfolio from $200 million to $16 billion.
  • Managed mortgage portfolios through multiple credit cycles.


5. Attractive Yield

 

  • 7.75% target yield* (8.03% with dividend reinvestment plan 'DRIP') payable monthly or reinvested for additional units. NAV will be static at $10.
  • Tax efficient - RiverRock MIC is eligible for Registered accounts
  • Since 2014, RiverRock has delivered

MICs offer an effective way for retail investors to tap into the potentially lucrative mortgage market.

RiverRock Management Inc., is licensed as a Mortgage Administrator through FSCO (Financial Security Commission of Ontario). Mortgage Administrator License # 12514. The Corporation and the Administrator have retained Ninepoint Partners LP (“Ninepoint”), to provide exempt market dealer, distribution and marketing services for the Corporation on an exclusive basis.

Are You An Accredited Investor?

The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.

If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.

The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:

(a) a Canadian financial institution, or a Schedule III bank;
(b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
(c) a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;
(d) a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);
(e) an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
(f) the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;
(g) a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;
(h) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
(i) a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada;
(j) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;
(k) an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
(Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.)
(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;
(n) an investment fund that distributes or has distributed its securities only to:
  1. a person that is or was an accredited investor at the time of the distribution,
  2. a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] or 2.19 [Additional investment in investment funds] of NI 45- 106, or
  3. a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;
(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;
(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;
(q) a person acting on behalf of a fully managed account managed by that person, if that person:
  1. is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; and
  2. Ontario, is purchasing a security that is not a security of an investment fund;
(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;
(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;
(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;
(u) an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or;
(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.

 

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