$80M | Debt and capital raise for investment management firm

KitsWest Capital advised a Vancouver-based investment management firm on the structuring and execution of an $80M debt and capital raise. The financing supported strategic growth initiatives including platform expansion, portfolio scaling, and balance sheet flexibility. The borrower required a lender match that understood the cash flow profile of asset management businesses, the regulatory framework for registered firms, and the recurring revenue dynamics of AUM-based fee streams.

The mandate

The engagement covered situation review and capital structure analysis, preparation of a comprehensive lender package documenting recurring revenue, AUM growth, and regulatory standing, identification and engagement of qualified Canadian and US lenders with financial sponsor and asset manager experience, term sheet negotiation across multiple lenders, coordination with regulatory and legal counsel, and execution through closing. Pricing, financial covenants, and structural protections were optimized through competitive tension across the lender group.

Why this transaction represents our practice

This $80M financing is representative of the debt and capital advisory work KitsWest delivers for owner-managed financial services firms including investment managers, registered investment advisors, alternative asset managers, and private wealth platforms across Canada. Financial services borrowers reward structured competitive processes because lenders with financial sponsor experience underwrite the recurring fee revenue and asset-management profile materially differently than generalist commercial lenders.