Bridgeport Alternative Income

A single-ticket investment solution for diversified, private-market income strategies.

Bridgeport Alternative Income Portfolio Structure

A multi-strategy approach with exposure to thousands of individual companies and assets across several niche strategies provides significant diversification within the private credit investment universe

Core Exposure Investment Strategy Est. Long-Term Return Target
Private Corporate Credit
(30% - 50%)
Senior & Second Lien Loans
Preferred Private Equity
Distressed Debt & Special Situations
7% - 12%
10% - 15%
15% - 20%
Real Estate Lending
(10% - 30%)
Commercial Real Estate Credit
Private Residential Mortgages
8% - 12%
6% - 9%
Specialized Strategies
(10% - 30%)
Equipment Finance
Royalty Strategies
Other Alternative Strategies
10% - 15%
8% - 15%
8% - 20%
Liquid Investments
(5% - 20%)
Liquid Fixed Income
Cash & Equilvalents
4% - 6%
0% - 2%
Bridgeport Alternative Income Portfolio 7% - 10%

The Bridgeport Alternative Income Fund combines all the benefits of private market income investing enjoyed by sophisticated institutional investors...

  • Access to differentiated private market strategies
  • Partnerships with globally recognized institutional asset managers
  • Broad strategy and manager diversification
  • Attractive absolute returns
  • Reduced volatility and correlations

In an investment vehicle that is suitable for individual investors that lack diversified private market access:

  • Rigorous strategy and manager due-diligence
  • Professional portfolio structuring and oversight
  • Monthly fund valuations
  • Open-ended structure with quarterly liquidity*
  • Immediate allocation with no capital-calls
  • Eligible for registered accounts

Sophisticated institutions are leading the surge in private credit investing

Private Debt Industry Assets Under Management

Source: Prequin

  • 95% of institutional investors expect to maintain or increase their allocation to private credit strategies
  • Private Credit investments have met or exceeded expectations for 91% of institutional investors
  • Canadian institutional investors are allocating, on average, 18% of assets to private credit strategies

Private credit has typically offered higher yields and total returns than comparable public market securities and are particularly attractive in a low yield environment.

Expected Long Term Returns of Fixed Income Strategies

Bridgeport Alternative Income Fund invests in a variety of income-oriented, private market asset classes through third party funds, co-investments and direct investments that offer high quality collateral and structural seniority.

A Current Selection of Portfolio Allocations to Institutional Private Credit Strategies

Asset Manager Manager Description Strategy Overview Geographic Exposure Asset Collateral
Founded in 1984, Bain Capital is one of the world's leading multi-asset alternative investment firms with >$100 billion in AUM and 19 offices globally. The Bain Distressed & Special Situations fund seeks out unique opportunities globally such as corporate restructurings, complex loans and distressed for control situations, amongst others. Global Reach Corporate Assets and Cash Flows
Bridge has a 30 year track record of private real estate investing. Managing >$15 billion across several strategies with 5 regional U.S. offices. Bridge Debt Stategies is a multi-strategy credit portfolio, diversified across multi-residential, commercial, student and senior housing properties in the U.S. through various loan structures. United States Focus Commercial and Residential Real Estate Assets
17Capital has raised and invested more than $2 billion into preferred private equity structures since 2010 from offices in New York and London. 17Capital specializes in preferred equity structures, secured against the investments of top-tier PE firms, offering more predictable returns and better downside protection than traditional private equity. European Focus Private Equity Portfolio Cash Flows and Monetizations
Arena Investors manages >$1 billion in diversified credit assets from offices in New York, San Francisco and London. The Arena credit fund manages a highly diversified, multi-strategy credit portfolio that seeks opportunistic situations across industries and geographies while hedging undesired risks. Global Reach Corporate Assets and Cash Flows
Audax Group is a leader in U.S. middle market investing and manages >$24 billion in assets across various private debt and private equity mandates. The Audax Senior Loan Fund invests in first lien, senior-secured variable rate loans to more than 200 middle market, private-equity backed companies. United States Focus Corporate Assets and Cash Flows
Carval has a 30 year history and has invested >$100 billion in mandates across the credit spectrum including Corporate Credit, Emerging Market Debt and Hard Assets. CarVal's Aviation Fund focuses on leasing early life, narrow body aircraft to airlines with the obvjective of generating stable, long-term leasing income. Global Reach Aircraft and Related Aviation Assets

Since the global financial crisis, sophisticated investors have sought strategies that generate sustainable returns with less correlation to traditional risk assets.

Why institutions implement alternative strategies

Individuals face the same portfolio construction challenges and should have access to the same solutions

Diversification 64%
Excess Returns 50%
Risk Mitigation 49%
New Opportunities 37%
Risk Adjusted Returns 32%

Source:  Natixis Global Asset Management survey of institutional investors.

Individual Investors face the same portfolio construction challenges and should have access to the same institutional tools.

Exposure to Alternative Strategies

Source: Blackstone “Seeking an Alternative: Understanding and Allocating to Alternative Investments”.

Bridgeport Alternative Income can be used as a compliment to traditional high yield allocations or as part of an allocation to portfolio diversifying alternative strategies.

Fund Structure Open-ended Mutual Fund Trust via Offering Memorandum
Eligibility RRSP, RRIF, RESP
Distributions Series A & F: Reinvested
Series G: 5% annualized cash distribution, paid quarterly
Management Fee Series A: 1.2% annually
Series F & G: 0.8% annually
Performance Fee 10% subject to 7% net hurdle rate and high-watermark, calculated and paid annually
Minimum Purchase $50,000 initial, $25,000 subsequent
Valuation Monthly valuation
Leverage Up to 25% at the fund level, used only for bridging or hedging purposes
Liquidity Quarterly with manager discretion to restrict redemptions under certain circumstances. See offering documents for specific details
Auditor PricewaterhouseCoopers LLP
Custodian National Bank Independent Network
Canadian Western Trust Company
Fund Administrator SGGG Fund Services
Legal Counsel Borden Ladner Gervais LLP
FundSERV Codes BPT485 (Series A)
BPT483 (Series F)
BPT484 (Series G)
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This information is confidential and has been provided by Bridgeport Asset Management Inc. (“Bridgeport”) for informational purposes only.   No information provided herein shall constitute, or be constituted as an offer to sell or a solicitation of an offer to acquire units of any security.  It is not intended as specific investment, financial, legal or tax advice and you should not rely on it as such.  This presentation does not constitute the official version of Bridgeport’s disclosure documents and may not always be the most current. This presentation and information contained therein is provided “as is”.  Bridgeport does not warrant the accuracy, adequacy, timeliness, or completeness of this presentation and information contained therein.

BRIDGEPORT ASSET MANAGEMENT INC.

77 Bloor St. W., Suite 1104
Toronto, ON M5S 1M2

Michael Harber, CFA

Director, Business Dev. & Investment Strategy
647-925-3481
mharber@bridgeportasset.com

John Fisher, CPA, CA, CFA

President & Chief Investment Officer
416-323-3241
johnf@bridgeportasset.com