Other Income-Producing Investments

Today, most traditional income-producing investments such as GICs, government bonds and corporate bonds do not provide adequate yield to meet the needs of many Canadians who rely on income from their investments to maintain their lifestyle.

There are many private companies and groups of companies who borrow money from the public through the issue of private debt. These loans vary widely in term, rate of return and performance. Investors chasing higher yield are often required to make private loans to undiversified businesses.

Westcourt has undertaken due diligence on a number of these private borrowers and has identified one firm, Lynx Equity Limited, that we recommend as appropriate for investors interested in “higher octane” private loans. These loans, which diversify their credit risk among numerous underlying operating businesses, typically require the lender to commit a minimum of $50,000 for a period of 1-5 years, and provide interest of between 8-12% per annum, paid monthly.

Note: Investors sometimes ask us whether they can receive better terms if they invest directly with the managers of the product we recommend. Westcourt's clients will always receive equal or better terms investing through Westcourt than investing directly with one of the funds we recommend. Find Out More

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