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Lending
to Later-stage Companies
ROI Fund makes private placement lending (a debt-based strategy) to
stable and later-stage Ontario companies with:
- positive or near-term cash flow
- established customer bases
- strong management teams
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Loans are Steady Business
When ROI Fund lends to later-stage companies, the Fund receives principal
and interest payments on a regular basis. Loans are concrete. You
can see the companies, the terms and the payments schedules.
A Clean and Automatic Exit Strategy
ROI Fund has a built-in exit strategy meaning – companies pay back principal
and interest until the loan is paid off. Example – if
a loan has a 5-year term, the company would typically repay 1/5 th of this loan
each year. At the end of 5 years, the loan is repaid giving ROI Fund an
automatic investment exit strategy. |
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Unlike other LSIFs, ROI Fund avoids investing in early-stage high-tech and biotechnology companies that may not even become viable operating entities, let alone grow in value.
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