Strategy
- Focus in areas of expertise, outside of the Real Estate and Energy industries, that produce attractive yields.
- Develop opportunities through
- high yield financial contracts
- mezzanine financing
Current Portfolio
Elbow River Marketing Partnership
Business:
- A wholesale marketer, transporter and supplier of butane and propane to major refineries and retailers in the United States, Canada and Mexico.
- Quickly expanding ethanol and bio-fuels marketing group now accounting for upwards of 25% of cash flows.
Mechanics:
- Elbow takes title of product, contracts a sale, arranges transportation and delivery (rail cars);
- concludes delivery and receives payment;
- The product prices are normally determined by the spot market price and Elbow typically has no product risk - delivery price is generally fixed at the time of title;
- Very stable high volume, low margin business not dependent on product prices;
- The Company brokers approximately 15,000 bbls of liquids per day; and leases up to 550 rail cars at any one time;
- In the first year with Avenir, increased cashflow to $12.5 million from previous 4-year average of approximately $9.5 million.
- President of Partnership: Ed Malcolm
- Office: Calgary, Alberta
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