Cliffside Capital: A clear view from our preferred vantage point.

Disciplined approach. Steady returns. Diversified exposure to an emergent and significant asset class.

OUR COMPANY

Investing in strategic partnerships with experienced third parties, Cliffside Capital (TSXV: CEP) is a trusted source of capital, meeting the market need for diversified funding sources to support the rapidly changing, technology-led, alternative lending marketplace.

With a proven track record of capital formation and disciplined investment, Cliffside Capital sources and evaluates investments in the growing Canadian non-prime lending sector, offering our investors attractive risk-adjusted opportunities in this exciting and emerging asset class.

“Providing stable capital to our disciplined and proven loan originators, delivering steady and predictable returns to our investors.”

OUR INVESTMENTS

Specialized expertise. Proven track record.

We are investing in partners with specialized expertise and proven track records in originating and servicing non-prime loans. Our initial investments are in the consumer non-prime automotive lending sector.

Cliffside Capital has invested $3.9 Million in two limited partnerships which invest in fully serviced non-prime automobile loans acquired from CanCap Management Inc., a proven originator and servicer. The partnerships have access to $100 Million in long-term funding and $16 Million in short-term funding from institutional lenders.

For most Canadians, automobiles are the second largest asset they own, after their home, but for the self-employed, those with new credit, like newcomers to Canada, or those facing debt due to illness, job loss or divorce, traditional financial institutions do not meet their loan needs.

Today, one-quarter of Canada’s auto finance market is non-prime, serviced by alternative lenders and growing. As this alternative lending market grows,  loan originators  are challenged to source sufficient capital. Cliffside Capital provides the stable and continuous capitalization these lenders need to manage liquidity.

Interested in becoming a partner?

Are you a proven originator with a history of disciplined underwriting and servicing?

If you’re looking to diversify your funding, contact Cliffside Capital today.

OUR LEADERSHIP

Management

Mr. Malone has significant leadership experience in the Canadian financial services industry. Mr. Malone is currently President and COO of CanCap Management Inc., which is a technology based consumer finance business focused on the automobile, installment loan, and credit card segment of the industry. Prior to joining CanCap Management Inc., Mr. Malone spent 3 years with D+H Corporation, a global payments and lending technology provider, overseeing the Broker Services division. Mr. Malone began his career in the branch network with Trans Canada Credit (subsequently acquired by Wells Fargo Financial Corporation Canada) in Eastern Canada and rose through increasingly more senior positions to Vice President Credit Operations for all of Canada where he oversaw a diverse workforce of 300 employees. Mr. Malone was responsible for credit risk and quality of the Canadian portfolio and oversaw the centralization of all underwriting functions, adding controls, governance and improved service quality across all product lines. Mr. Malone also sits on the Board of Directors of Toronto Children’s Aid Society.

Mr. Bharucha is a Chartered Accountant and holds the ICD designation (ICD.D) from the Institute of Corporate Directors. Mr. Bharucha’s principal occupation is as a corporate director in various corporations. Mr. Bharucha is a Director and Chair of the Audit Committee of Centric Health Corporation, a TSX listed diversified public healthcare company. Mr. Bharucha currently also serves as a Director of Scarborough Rouge Hospital. From May 1997 to September 2009 Mr. Bharucha was the Chief Financial Officer of Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) (TSX: CAR.UN), one of Canada’s largest owners of multi-family rental communities. Mr. Bharucha’s previous experience includes Vice President and Controller of MPI Group Inc., a real estate investment and development company. Previously, he also held the position of Controller of Guaranty Properties Limited (a subsidiary of Guaranty Trust Company of Canada) and was responsible for financing, planning, accounting, reporting and management of real estate operations.

Board of Directors

Mr. Stein is the founder, and Chair and Chief Executive Officer of MPI Group Inc., a real estate development and investment company founded in 1994. He also held the position of Chair and Chief Executive Officer of the real estate investment and development company, MICC Properties Inc. until December 2000. Between 1978 and 1987, Mr. Stein held progressively senior positions with The Mortgage Insurance Company of Canada, ultimately holding the position of Executive Vice-President responsible for operations. He is a founder and current Chair of the Canadian Apartment Properties Real Estate Investment Trust (CAPREIT), Canada’s first TSX listed apartment REIT (TSX: CAR.UN). In 2012, Mr. Stein was appointed to the Board of Directors of City Financial Investment Company Limited, a United Kingdom asset management company regulated by the Financial Conduct Authority and registered as an Investment Adviser firm with the SEC. He is a member of the Board of McEwen Mining Inc. (NYSE/TSX) and the Board of FirstService Corporation (NASDAQ/TSX). Between 2000 and 2006, Mr. Stein was a member of the board of directors of Goldcorp Inc. (NYSE/TSX). Mr. Stein is a graduate engineer, and has an MBA in Finance and International business from Columbia University in New York.

Mr. Malone has significant leadership experience in the Canadian financial services industry. Mr. Malone is currently President and COO of CanCap Management Inc., which is a technology based consumer finance business focused on the automobile, installment loan, and credit card segment of the industry. Prior to joining CanCap Management Inc., Mr. Malone spent 3 years with D+H Corporation, a global payments and lending technology provider, overseeing the Broker Services division. Mr. Malone began his career in the branch network with Trans Canada Credit (subsequently acquired by Wells Fargo Financial Corporation Canada) in Eastern Canada and rose through increasingly more senior positions to Vice President Credit Operations for all of Canada where he oversaw a diverse workforce of 300 employees. Mr. Malone was responsible for credit risk and quality of the Canadian portfolio and oversaw the centralization of all underwriting functions, adding controls, governance and improved service quality across all product lines. Mr. Malone also sits on the Board of Directors of Toronto Children’s Aid Society.

Maurice Kagan is President of the Canal Group of real estate companies. Prior to this time, he was Chief Executive Officer of Sparkle Solutions Corporation, a laundry route operator that serviced laundry machines throughout Canada, Mr. Kagan was a Director and Chair of Carfinco Financial Group Inc. (TSX: CFN). Carfinco is a subprime lender in the auto sector servicing dealerships throughout Canada. Carfinco was sold to Santander Bank in March 2015 for over $298 million. In 1998, Mr. Kagan spearheaded the launch of Residential Equities Real Estate Investment Trust (“ResREIT”), which raised in excess of $197 million in its initial public offering which was subsequently sold to Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR.UN). Mr. Kagan serves as a Director and Chair of the Audit Committee of LoneStar West Inc. (TSXV: LSI) and is a Director of Kew Media Inc. (TSX:KEW). Mr. Kagan has Bachelor of Commerce from the University of Cape Town, Certificate in the Theory of Accountancy and also qualified as a Chartered Accountant in South Africa in 1981. Mr. Kagan has significant experience in start-ups and in the public sector, as well significant knowledge of the debt and equity markets in Canada.

Mr. Newman is President of Lone Star Funds, Asia. Mr. Newman is a member of Lone Star’s Senior Management and Global Risk Committees and is Chairman of the Market Risk Committee. Prior to joining Lone Star, Mr. Newman was the Founder and Managing Partner of Broadcliff Capital Partners, a real estate private debt and equity investor based in London. Broadcliff served as the international investment advisor to the Lehman legacy real estate private equity funds (known as Silverpeak). Prior to founding Broadcliff, Mr. Newman was Global Co-Head and Chief Investment Officer of the Lehman Brothers’ real estate private equity business where he was instrumental in establishing the European and Asian real estate private equity investment operations. Mr. Newman also previously served as a Managing Director with Fortress Investment Group LLP in Europe. Mr. Newman holds a B.A. degree from Dartmouth College and a J.D. from Dalhousie University. and has over 25 years of experience as a principal investor and lender across a range of businesses and assets spanning North America, Europe and Asia

Mr. Ray has been the Chief Executive Officer of Realvest Management, a privately-owned company with investments that include real estate, mortgages and other financing, since 2007. Prior to that, for 27 years until his retirement in 2007, Mr. Ray was a partner at KPMG and a predecessor firm where he carried the role of audit partner and relationship partner for various public and private real estate and finance companies. Since December 30, 2013, Mr. Ray has been a Director of Firm Capital American Realty Partners Corp. (formerly Delavaco Residential Properties Corp.), a company focused on investing in income producing real estate and mortgage debt lending in the United States whose shares are listed and posted for trading on the TSX Venture Exchange. Since August 7, 2014, Mr. Ray has been a Director of Firm Capital Mortgage Investment Corporation, a real estate mortgage lender operating in Canada whose shares are listed and posted for trading on the Toronto Stock Exchange. Mr. Ray holds a Bachelor of Commerce degree from University of Toronto, and a CPA, CA designation. His community involvement includes sitting on the Board of UJA Federation of Greater Toronto where he is the past Treasurer and past Audit Committee Chair, and sitting on the Audit Committee of Sinai Health System (formerly Mount Sinai Hospital). He currently sits on the board of the Jewish Foundation.

INVESTOR RELATIONS

IR Overview

Cliffside Capital is focused on investing in strategic partnerships with third parties who have specialized expertise and a proven track record in originating and servicing loans and similar types of financial assets. Under our approved investment guidelines, Cliffside Capital’s strategy is to generate revenue as an investor, affording shareholders an opportunity to invest in the growing alternative lending sector with the potential for attractive dividend yields and minimal operational risk while earning a reliable total return.

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