Our Investment Programs
Core alternative investment solutions designed exclusively for our members.
1) HCC Canadian High Yield Program
Current annual yield: 15%, payable monthly
Instrument: Secured Debentures
Type: Asset-based loans
Liquidity: Low
Time horizon: 2 years, optional renewal
Eligibility: Accredited investors
Investment Thesis
- Tap into inefficiencies within the Canadian financial system – lending to the underserved subprime consumer representing approximately 1/3 of Canadians who do not have access to products of traditional financial institutions
- Loans are small and short-term in nature, allowing greater diversification and turnover
- Loans are fully secured by hard collateral representing 2x the loan amounts – significant coverage in the event of borrower default
- Collateral assets are relatively liquid; vehicles such as cars, trucks, boats, RVs, and equipment – property that can be sold at auction within 21 days
- Investment returns exhibit low correlation to stocks and bonds
2) HCC Global Mortgage Yield Program
Current annual yield: 7-12%, payable monthly
Instrument: Direct Mortgages
Type: Asset-based loans
Liquidity: Low
Time horizon: 1-1.5 years
Eligibility: Accredited investors
Investment Thesis
- Invest directly in individual mortgage loans backed by real estate in major urban markets globally
- Loans are fully administered on behalf of investor; liens are held directly in investor name
- Diversify across residential 1st mortgages, 2nd mortgages, and construction loans
- Loans are fully secured at a max Loan to Value of 75% at initiation for 1st mortgages
- Investment structure allows investors to diversify their portfolio of such assets with less capital
- Low correlation to stocks and bonds
3) HCC Toronto Condo Investment Program
Targeted annual levered returns: 30%+
Instrument: Direct Asset Purchases
Type: Income-producing real estate
Liquidity: Low
Time horizon: 5-10 years, optional equity takeout via refinance every 2-3 years
Eligibility: Accredited investors
Investment Thesis
- Investment in Toronto class A condominium units in bulk; build a diversified portfolio of rental units
- Generally low risk assets that can be used to safely park large chunks of capital securely; Toronto real estate viewed globally as safe haven asset
- Own assets in client name; direct investment via client’s own personal holding companies established for the sole purpose of holding title of properties
- Hold assets for long term capital appreciation; build your rental empire
- Use of leverage – amplify returns and capitalize on low interest rate environment
- Rent out the units, cover carrying cost as much as possible
- Low correlation to stocks and bonds
4) HCC Global Real Estate Development
Targeted annual levered returns: 30%+
Instrument: Equity securities, Partnership units
Type: Opportunistic, Value-Add
Liquidity: Low
Time horizon: 2-5 years
Eligibility: Accredited investors
Investment Thesis
- Invest in the equity of hand-picked global development projects that derive their returns by actively adding value to real estate properties rather than by passive means
- Investments are backed by the underlying land
- Development projects include mostly residential – single family detached, townhouses, boutique condominiums, luxury properties, and villas
- Take part in ownership perks such as usage of global luxury villas
- Investment structure allows investors to diversify their portfolio of such assets with less capital
- Use of leverage: 75% Loan to Cost
- Low correlation to stocks and bonds