Sprott Asset Management LP has appointed Third Eye Capital Management Inc. as exclusive sub-advisor to Sprott Private Credit Fund, Sprott said Tuesday.

The fund’s principal investment objective is to achieve superior risk-adjusted returns with minimal volatility and low correlation to most traditional asset classes by investing in private asset-based loans of Canadian companies.

“We are excited to be able to offer Third Eye Capital’s proven investment strategy to our domestic clients.” said James Fox, President of Sprott Asset Management.

Third Eye Capital is a leading independent investor in privately-negotiated secured loans. Founded in 2005 by industry veterans Arif Bhalwani and David Alexander, Third Eye Capital applies a highly structured investment approach supported by rigorous, fundamental credit and collateral analysis that has resulted in consistent attractive returns with no investment losses and no reliance on leverage. Third Eye Capital was responsible for the private asset-based lending investment account of a major Canadian pension fund, which generated net returns of 13% per annum from 2005 to 2008, with no investment losses. Third Eye Capital is also the advisor of an offshore private credit fund that has generated net annualized returns in excess of 14% since its inception two years ago.

“Sprott has always been the choice firm for investors seeking proven performance and a strong, distinct investment culture,” said Arif Bhalwani, president & CEO of Third Eye Capital. “We intend on continuing that heritage with the Sprott Private Credit Fund.”

“Arif and his team have delivered stellar risk-adjusted returns and bring an ideal complement to our existing fund line-up. For our investors who are seeking enhanced income but have a lower tolerance for equity market volatility and risk, we now offer a best-in-class solution,” added Peter Loach, Sprott Asset Management’s executive vice president of product development.

Sprott Asset Management is a subsidiary of Toronto-based Sprott Inc. (TSX:SII).

IE