Investment Opportunities

Our Philosophy

The investments in our portfolio are purposefully selected from the opportunities originated through, and underwritten by, KV Capital’s in-house mortgage platform. Each opportunity is individually assessed by KV Capital’s professional team based on the merits of protecting capital and maximizing the risk adjusted returns available in the market.

The understanding that we act as fiduciaries for our clients and a respect and appreciation for the level of responsibility entailed by this position of trust is fundamental to our firm’s culture and drives our investment decisions.

Whether in our underwriting of mortgage investment opportunities or our interactions with investors, we are proud of our team’s integrity and commitment to the highest degree of professionalism, rigour, discipline and transparency.

Thank you for investing with us.

Ways to invest with KV

Since AUM Target Returns
Mortgage Fund Class A (Greater than $150,000)

Class B (Less than $150,000)

 

 2009 $100M  +/- 7.5%

Fund benchmark return: 2 yr. Govt of Canada bond + 4.5%

 
Direct Mortgages 2009 $40M Interest coupon typically ranges between 8% and 10%

The rates of return above may vary, potentially significantly, as a result of the inherent risks associated with mortgages.  Principal and interest are not guaranteed.  Please speak with a registered dealing representative about the opportunities and risks of investing with KV.

Direct Investments

Direct investors hold a syndicated mortgage interest in a particular lending deal. This option allows investors the maximum control to invest in deals that match their preferred returns and investment characteristics.

Direct Investments are available for cash accounts. Interest and principal payments from the particular deal invested in are deposited directly to the investors’ bank account as they are received.

Direct Investment Cash Flows

KVcapital_DirectInvestment

Invest

KV Capital provides a “full service” experience to investors:

  1. 1
    Highlight Sheet

    Potential investors are provided with an initial document that briefly outlines upcoming mortgage investment opportunities. The investor may then review all details of a specific opportunity, including a summary of our due diligence process.

  2. 2
    Investor Acceptance

    Investors who express interest from the “teaser” documents complete New Client Application Forms.

    These forms are required to qualify investors in accordance with Securities legislation.

  3. 3
    Mortgage Subscription Agreement

    This document outlines the details of the specific mortgage being invested in, the amount of investment, the interest rate the investor will receive on the investment, the maturity date of the mortgage, etc.

  4. 4
    Mortgage Funding

    Once all conditions of the mortgage loan are met by the borrower, investor funds held in our trust account shall be funded to the borrower’s lawyer through our lawyer, for disbursement to the borrower.

  5. 5
    Investment Confirmation

    Investors receive a confirmation letter for their records following the funding of a mortgage.

  6. 6
    Monthly Interest Payments

    Monthly interest payments are deposited directly into the investor’s bank account at the middle of the month following the month in which it was earned.

    Electronic email notifications are distributed with deposit information.

  7. 7
    Investment Statements

    Investors receive quarterly statements and monthly confirmations of interest payments deposited to their bank account.

  8. 8
    Payout & Discharge

    When a borrower repays their mortgage (partial or full repayment) KV Capital will return the investment to each investor.

KV Mortgage Fund

Participants in KV Mortgage Fund hold a proportionate interest in a portfolio of syndicated mortgages. This option allows investors to benefit from diversity and removes the requirement of active management that typically is required to realize the return associated with short term mortgage investments.

KV Mortgage Fund investments are available under all of the following options:

Cash

Preferred share holders receive monthly cash dividends to their bank account under the cash option.

Registered Plans

Preferred shares in the Fund are eligible investments for registered plans (RRSP, RESP, TFSA, etc.).

Dividend Re-Investment Plan

Holders of the Fund can elect to purchase additional preferred shares with the monthly dividends that they earn.

Fund Investment Cash Flows

KVcapital_fundinvestment