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, propane, condensate (natural gasoline), ethanol and other petroleum products to major customers in the US, Canada and Mexico.
Mechanics:
Elbow takes title of product, contracts a sale, arranges transportation and delivery;
- concludes delivery and receives payment;
LPG Base Business:
- Mature and well established.
- Elbow has a strong industry reputation and customer relationships.
- Counterparties are well established, mature business with excellent financial strength.
- Ethanol is a relatively new business but is tightly controlled in terms of counterparties and contract execution.
- Gross margins are typically hedged with swaps on a matched volume and settlement timing basis.
- Low exposure to foreign currency risk due to ability to closely match payments and receipts.
- In the first year with Avenir, increased cash flow 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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