Canadian private credit opportunities

Canada’s private credit market remains structurally underdeveloped relative to the size and diversity of its operating economy. A concentrated banking system and standardized underwriting approaches can limit credit availability for certain businesses, even where underlying operations, assets, or cash flows are viable. Beltline Capital Partners engages with select capital partners to explore structured exposure to private credit opportunities that sit between traditional bank lending and equity capital.

This page is provided for informational purposes only and is intended for sophisticated parties such as family offices and investment funds seeking to understand our approach and areas of focus.

Our role

Beltline originates, evaluates, and structures private credit transactions. Where appropriate, we engage with aligned capital partners to discuss potential participation within defined transaction specific frameworks. Beltline remains actively involved through transaction structuring, execution, and ongoing oversight. When desired we encourage capital partners to engage with us as underwriting and structuring counterparts rather than as passive allocators.

Market context

Canada has a broad population of small and mid sized businesses operating across technology, healthcare, industrials, services, and real asset backed sectors. Many of these businesses are profitable or near profitability and asset supported, yet may fall outside traditional bank lending parameters due to size, complexity, growth profile, or transitional circumstances.

Private credit can serve as a complementary source of capital in these situations. Unlike equity, private credit may provide financing without ownership dilution. Unlike traditional bank lending, it can be structured to reflect specific collateral, cash flow timing, and risk characteristics.

Relative to more mature markets, the Canadian private credit landscape remains less crowded and more relationship driven. This environment may be attractive to disciplined underwriting platforms that prioritize structure, downside protection, and repeatable processes. Beltline operates within this context by focusing on situations where capital structure, rather than capital availability alone, is a primary constraint.

How opportunities are sourced and structured

Potential opportunities are identified based on borrower specific circumstances rather than predefined product mandates. Situations may include:

• Working capital and asset based financing

• Growth and expansion related financing

• Acquisition, buyout, or ownership transition financing

• Refinancing of existing or transitional capital structures

• Special situations requiring tailored downside protection

Transactions can be junior, senior or unitranche in nature and may be supported by accounts receivable, inventory, contractual cash flows, or enterprise value, depending on the circumstances of the transaction.

No sector specific allocation targets are implied.

SPV based approach

Where capital participation is contemplated, transactions are typically structured on a deal by deal basis through special purpose vehicles or equivalent transaction specific structures.

Depending on the circumstances of a given transaction, structures may include senior secured credit, structured credit instruments, or convertible debentures. Convertible debentures may be considered where a portion of the risk or return profile is appropriately aligned with conversion features, while still prioritizing downside protection, defined repayment mechanisms, and disciplined structuring.

Each structure is specific to the underlying transaction and is established with defined economics, risk parameters, governance considerations, and duration. This approach allows interested capital partners to evaluate opportunities individually, select exposure based on structure and risk profile, and avoid blind pool exposure.

The use of special purpose vehicles and transaction specific instruments also facilitates clarity around collateral, priority, and rights, and allows capital partners to align participation with their own investment objectives and constraints.

Underwriting philosophy

Our approach emphasizes structure and risk identification.

Key considerations include downside protection, collateral and cash flow visibility, clarity of repayment sources, alignment of incentives among stakeholders, and consistency of underwriting process.

We engage in situations involving complexity only where risks can be identified, assessed, and structured appropriately.

Who this may be appropriate for

This platform may be of interest to:

• Family offices seeking to better understand direct private credit opportunities

• Credit funds exploring Canadian transactions or co investment relationships

• Institutional or strategic capital partners interested in structured participation

This platform is not intended for retail investors or for the general public.

How discussions typically proceed

Where mutual interest exists, discussions may include consideration of:

• Transaction specific SPV participation

• Co investment alongside Beltline structured capital

• Participation tranches alongside senior or structured positions

• Potential referral or forward looking collaboration frameworks

Any such arrangements are transaction specific and subject to alignment, documentation, and applicable approvals.

A long term perspective

Beltline’s objective is to build a durable private credit platform grounded in consistent underwriting principles and long term capital relationships. We believe certain segments of the Canadian private credit market remain underserved and that disciplined, structure led approaches may be resilient across economic cycles.

Connect with us to learn more

If you are a family office or investment fund interested in learning more about our approach to private credit in Canada, we welcome an initial conversation.

All discussions are exploratory in nature and do not constitute an offer to sell or a solicitation to purchase any security.