Wellington Financial LP
Based in Toronto, Wellington Financial LP is a privately-held bridge financing & venture debt fund. Our team is supported by an advisory council that reflects a deep and varied group of talented and accomplished individuals in a variety of relevant industries of the economy.
Generally, our exposure to any single transaction is between $2 million and $10 million. Our syndicate relationships allow us to issue terms sheets of up to $30 million, where appropriate. Wellington Financial LP clients vary in size and business model, but generally have current year run rate revenue of $5 million. We will advance funds for as short as six months, and for as long as three years; subject to the needs of our entrepreneur partners and public company clientele. Sectors of focus include automation, biotechnology, business services, communications, healthcare, industrial products, light manufacturing, oil & gas services, and technology.
We offer four distinct debt products:
- Operating lines (364 or 366 day term). Operating lines are renewable on each anniversary, subject to the needs of our entrepreneur partners and credit review by the Wellington team.
- Term loans (6 months to three years). Monthly cash interest payments are generally required. Principal payment is due only at the end of the loan period.
- “Umbrella Line” is suitable for accounts receivable and SR&ED financing. Monthly cash interest payments.
- Reducing term loan (6 months to 36 months). Monthly cash interest and principal payments are required.
- Our operating lines are competitive with the rates offered by Canadian Chartered Banks and ABL firms.
- Our term debt is competitive with every established fund of this kind in Canada. Interest rates mirror those of the publicly traded sub-investment grade debt issuers in North America.
- We also require some form of modest equity participation in conjunction with our loans; this right (usually in the form of warrants) isn’t free to us as we pay cash for it when we exercise the equity feature down the road. This equity “coverage” is priced in relation to future follow-on financings in the case of private firms – a very attractive feature for growing firms as the current shareholders benefit from the vast majority of the value created in the intervening period.
Wellington Financial LP has led or participated in financing syndicates with many well-recognized venture capital firms, including the B.E.S.T. Fund, Canadian Medical Discoveries Fund, J.L. Albright Venture Partners, HSD Partners, Insight Venture Partners, Telus Ventures, and VenGrowth Capital Partners.
Wellington Financial LP has also worked with such venture firms as BCE Capital, the Canadian Science & Technology Fund, Covington Capital, Lawrence Asset Management, MDS Capital, Telsoft Ventures and Ventures West on their portfolio companies.