Private Debt Partners, a Toronto- and Montreal-based provider of private debt solutions to mid-market companies, has launched its debut senior secured direct lending fund. The target is C$750 million. Private Debt Partners specializes in lending to Canadian mid-market businesses.
TORONTO and MONTREAL, May 6, 2020 /CNW/ – A team of senior experts in the Canadian private debt alternative asset industry has launched Private Debt Partners, which specializes in lending institutional capital to high-quality Canadian mid-market businesses and is currently raising its $750 million Senior Secured Direct Lending Fund.
PDP is co-founded by Jeffrey Deacon, Greg Dimmer and Jean-Christophe Greck, who together bring 35 years of combined experience in loan origination, portfolio management, underwriting, and fundraising in Canada, and have directly originated over $1 billion in loans. PDP’s founding investors and Board of Directors include Chair Stephen Lister, Co-Founder of Imperial Capital, one of Canada’s most successful private equity buy-out firms, and Investment Committee Chair Thomas MacMillan, the former Chair and CEO of CIBC Mellon.
“This is an impressive team that has delivered consistent long-term returns for investors and provided innovative solutions for borrowers in one of the fastest growing alternative asset classes”, said Stephen Lister, Chair of PDP. “Their success has been based on their strong alignment with the needs of investors and borrowers, and a proven strategy of direct loan origination, thorough due diligence, and delivering credit solutions with an entrepreneurial mindset to assist management teams in building the long-term value of their enterprises.”
Credit markets have tightened significantly as a result of COVID-19 and PDP’s launch comes at a time when institutional investors are seeking more reliable yields amidst ongoing market uncertainty and high volatility. Demand by commercial borrowers is only expected to increase and PDP management believes it is uniquely positioned to meet the evolving needs of quality mid-market firms for patient capital with terms better than those available from traditional lenders.
“Private corporate debt has been one of the fastest-growing alternative asset classes and one of the best investments on a risk-return basis. We expect alternative debt instruments will be even more vital to fuel the economic recovery while providing institutional investors with diversification and reliable, consistent income,” said Jeffrey Deacon, Founder and Managing Partner of PDP. “Our team’s unique, specialized expertise in the underserved area of private debt puts us ahead of the curve in identifying the best lending opportunities in key market segments.”
PDP is raising its Senior Secured Direct Lending Fund to build a Canadian multiple sector portfolio of long-term, fixed interest rate, senior secured loans to high-quality companies with strong market positions, management teams, and financial performance. Loans are being customized to meet borrowers’ specific requirements with term limits of up to 10 years, flexibility in amortization, and target yields to investors in the 6.0% to 6.5% range.
“Our Fund has a singular focus on private corporate debt, enabling us to secure attractive investment opportunities with high-quality, mid-market companies in targeted sectors. This fund is constructed with an investment strategy that has been proven to generate reliable yields, which is particularly attractive in our ongoing low interest-rate environment,” said Greg Dimmer, Founder and Managing Partner of PDP. “We provide investors true portfolio diversification with steady, predictable cash flows, and a premium rate of return relative to risk.”
“We have established PDP with a “best-in-class” approach to all aspects of our business, including governance and state-of-the-art technology, loan management and reporting,” said Tom MacMillan, Chair of PDP’s Investment Committee. “We have structured PDP to directly align with the needs of investors and borrowers, which is fundamental to delivering the consistent yields that investors seek and the patient capital that borrowers rely on.”
The PDP Team
Jeffrey Deacon – Founder & Managing Partner
Jeffrey Deacon is focused on originating high-quality, mid-market long-term loans while overseeing all aspects of the firm’s portfolio management requirements. Jeffrey and Greg Dimmer serve as Co-Heads of origination and portfolio management. Jeffrey was formerly a Managing Director at Fiera Private Debt and Integrated Asset Management for over four years, where he was a leading originator on a team that completed transactions valued over $1 billion across various industry sectors and throughout Canada. Prior to this, Jeffrey managed a top-performing team in the GTA for Roynat Capital, earning recognition as a top-performing District Director for the merchant capital and long-term lending arm of the Bank of Nova Scotia.
Greg Dimmer – Founder & Managing Partner
Greg Dimmer is focused on finance, operations, origination and portfolio management. Greg was previously a Managing Director at Fiera Private Debt and Integrated Asset Management for over eight years, where he was lead originator involved in dozens of transactions valued at $10 million to over $50 million across various industry sectors and throughout Canada, with a focus on Quebec and Alberta. Greg also spent five years in the venture debt industry, predominantly in the US, lending to technology companies. Prior to that, he spent five years leading sales at Financial Models Company (acquired by SS&C) in the Canadian technology industry focused on the financial markets, followed by a senior executive role at CBID markets, a bond trading platform focused on Canadian institutional fixed income desks.
Jean-Christophe Greck (CFA) – Founder & Managing Partner
Jean-Christophe Greck is a Founder, Chief Investment Officer, and a Managing Partner at PDP. As PDP’s Chief Investment Officer, his focus is fundraising, investor relations, origination, and portfolio management. Before founding PDP in 2020, Jean-Christophe was a Managing Director at Fiera Private Debt and Integrated Asset Management for eleven years, where he was responsible for business development and investor relationship management across Canada. Jean-Christophe was also responsible for origination, financial analysis, due diligence, documentation and loan portfolio management on Quebec-based investment transactions. He is a CFA, CAIA, FRM and PRM charter holder.
Mark Riden (CPA.CA) – Chief Operating Officer
Mark Riden is focused on overseeing the ongoing corporate and back-office operations as well as the Company’s IT infrastructure, risk and data security. Before joining PDP in 2020, Mark was the Principal at Riden & Associates, a consulting practice specializing in operational efficiency and automation specifically focused within the financial services industry. Previously, he was the CFO and VP Finance and Operations at NEI Investments and spent five years in the fund of hedge fund industry as CFO of Stellation Asset Management. Also, he was VP Finance and CFO at Burgundy Asset Management, an independent money manager, focused on Canadian high net worth families. His background also includes leading the third-party fund administration and custody business at the Royal Bank, as well as senior executive roles at Fidelity Investments Canada, Wood Gundy and Scotiabank fund operations.
Sean Pisarski (CFA) – Director
Sean Pisarski is a Director of PDP focused on deal origination, underwriting, due diligence, and loan portfolio management. Before joining PDP in 2020, Sean was a Director at Fiera Private Debt (formerly known as Integrated Asset Management), where he was involved in mid-market transactions valued at approximately $100 million across a variety of sectors within Canada. Prior to joining Fiera Private Debt, Sean spent three years in global credit at RBC focused on the Industrial, Paper & Forest Products and Automotive sectors. Mr. Pisarski also spent time in equity research responsible for covering Special Situations at an independent investment bank in Toronto.
PDP’s team also brings solid governance, guidance and backing from blue-chip advisors.
Stephen Lister – Chair
Stephen Lister is Chair of PDP and a member of the Investment Committee. Mr. Lister is a private financier and Co-Founder and Investment Committee Member of Imperial Capital, one of Canada’s most successful private equity buy-out firms. He was Managing Partner of the firm from inception in 1989 to 2019, where he co-lead the development and investment of Funds I through VII. Mr. Lister has been a director and/or trustee of many private and public companies, including Stantec, Inc., E.D. Smith & Sons Ltd., Associated Freezers Income Trust, Lise Watier Cosmetics, YPTel Corp., and Petra Pet, Inc. He is also a Board Member of the Canadian Institute of Advanced Research (CIFAR), the Advisory Board of the Ivey Business School, and the Royal Conservatory of Music.
Thomas MacMillan – Board Member & Chair of the Investment Committee
Mr. MacMillan has over 45 years of financial services experience and has held senior leadership positions at some of Canada’s most prestigious financial institutions, including the Bank of Montreal, Chase Manhattan Bank Canada, Mellon Bank Canada. Most notably, Mr. MacMillan served as President and CEO of CIBC Mellon from 1998 to 2009 and was Chair of CIBC Mellon from 2009 to 2011. Following his tenure at CIBC Mellon, Mr. MacMillan was Chair of Blair Franklin Asset Management and CEO at Gluskin Sheff.
About Private Debt Partners:
Toronto-based with an office in Montreal, Private Debt Partners is a Canadian alternative asset manager that partners with institutional investors to generate yield and portfolio diversification through private debt strategies. Private Debt Partners Inc. originates and structures senior loans to mid-market companies with strong market positions, management teams and financial performance. Investors benefit from PDP’s deep sector expertise, the team’s track record of success and its focus on underserved sectors of the private debt market. This quality approach to lending enables PDP to deliver higher risk-adjusted returns and true portfolio diversification. Please visit www.privatedebt.com for more information.