sprott bridging income fund lp september 2015 formerly bridging credit fund lp. effective july 25,...

Sprott Bridging Income Fund LPSeptember 2015

Formerly Bridging Credit Fund LP. Effective July 25, 2014, Sprott Asset Management LP became the successor manager to the Fund.

NOW AVAILABLE IN AN RSP VERSION

Sprott Asset Management LP Sprott Bridging Income Fund LP2

Sprott Asset Management LP is the investment manager to the Sprott Funds (collectively, the “Funds”).

The Sprott Bridging Income Fund LP (the “Fund”) is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the Fund including its investment objective and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Fund and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstance. This communication does not constitute an offer to sell or solicitation to purchase securities of the Fund.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction.

The Fund is generally exposed to the following risks. See the offering memorandum of the Fund for a description of these risks: Speculative Investments; Limited Operating History for the Partnership; Distributions and Allocations; Class Risk; Possible Loss of Limited Liability; Repayment of Certain Distributions; Limited Partners Not Entitled to Participate in Management; Dependence of Manager on Key Personnel; Reliance on Manager; Dependence of Sub-Advisor on Key Personnel; Reliance on Sub-Advisor; Limited Ability to Liquidate Investment; Possible Effect of Redemptions; Tax Liability; Charges to the Partnership; Potential Indemnification Obligations; Not a Public Mutual Fund; Changes in Investment Strategies; Valuation of the Partnership’s Investments; Lack of Independent Experts Representing Limited Partners; No Involvement of Unaffiliated Selling Agent; General Economic and Market Conditions; Unspecified Investments; Competitive Environment; Illiquidity of Underlying Investments; Credit Risk; Impaired Loans; No Insurance; Non-Controlling Investments; Joint Ventures and Co-Investments; Litigation; Fixed Income Securities; Equity Securities; Possible Correlation With Traditional Investments; Idle Cash; Currency Risk; Concentration; Indebtedness.

Disclaimer


Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Sprott Asset Management LP. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by Sprott Asset Management LP is or will be invested.


Agenda

1. Bridging Finance Inc. Overview– About the Sub-Advisor– Investment Team

2. Sprott Bridging Income Fund LP Overview– About The Fund– Offering Overview

3. Strategy Overview– Factoring– Investment Criteria– Risk Mitigation– Recent Transactions– Performance

4. Value Proposition– Why Invest in the Fund?– Why Borrowers Choose Bridging Finance Inc.

Sprott Asset Management LP Sprott Bridging Income Fund LP

Bridging Finance Inc. is a Restricted Portfolio Manager and Exempt Market Dealer and is registered across Canada. Bridging Finance Inc. has a track record of strong private investment performance with minimum volatility and attractive yield.

Bridging Finance Inc. (the “Sub-Advisor”)

Bridging Finance Inc. OverviewAbout the Sub-Advisor

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We invest in Private Debt of middle-market Canadian and U.S. companies unable to access traditional financing sources.

Our team has extensive experience in private debt. The Fund is audited annually with independent valuation by Ernst & Young LLP and administration is conducted by an independent third party (CommonWealth Fund Services Ltd.).


Natasha Sharpe, CEO and Chief Investment Officer

> Natasha is the Chief Executive officer and Chief Investment Officer of the Sub-Advisor. Natasha was previously the Chief Credit Officer for Sun Life Financial where she was responsible for creating risk policy for the company’s $110-billion global portfolio of managed assets. Prior to that, Natasha spent over 10 years at BMO Financial Group where she led various teams in risk assessment and corporate finance. In 2010, Natasha was named as one of Canada’s Top 40 Under 40. Natasha is a director of public, private, and non-profit companies. She holds a PhD and a Masters of Business Administration from the University of Toronto.

David Sharpe, President and Chief Operating Officer

> David is President and Chief Operating Officer of the Sub-Advisor. David is responsible for strategic relationships for the firm and ensuring there are proper operational controls in place for sustainable growth of the organization. David has close to two decades of financial services industry experience, in roles such as General Counsel, Chief Compliance Officer and Chief Risk Officer for leading financial organizations, and previously was the head of investigations for the Mutual Fund Dealers Association of Canada. David is a lawyer and has been a member of the Law Society of Upper Canada since 1997. David has an LLB from Queen’s University, an LLM in Securities Law from Osgoode Hall Law School and a Masters of Business Administration from the Richard Ivey School of Business, University of Western Ontario.

Bridging Finance Inc. OverviewInvestment Team

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Key Success Factor Description

Credit Quality and Credit Discipline

• Credit quality and credit discipline are the keys to success in secondary lending.

• Bridging Finance has extremely robust process controls.

• Operational risks are mitigated using key process controls, documented funding processes, field audits, site visits, customer calls and other recognized practices.

Deal Sourcing • Given the short investment term, a constant deal pipeline to replace maturing deals is important. Management has strong industry contacts as well as a national professional advisor contacts.

Professionalism and Reputation

• Maintaining high standards of professionalism and developing/maintaining a strong reputation earned through: positive experience for advisors, and clients; integrity and professionalism of conduct.

Success Factors

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Sprott Bridging Income Fund LP (the “Fund”)

A diversified product for yield-seeking Investors

• Investors seeking safety as well as yield have had limited options.

• Sprott Bridging Income Fund LP is designed to produce yield in a yield-challenged, zero-interest rate environment.

Private Debt • All loans are secured against fully vetted Accounts Receivable, Inventory, recently appraised Machinery and Equipment and Real Estate.

• Diversification of risk across the Fund’s portfolio is carefully measured and managed.

Attractive industry profile and changing market dynamics

• Attractive industry profile and changing market dynamics

• More costly for banks to service the small-medium sized Company market.

• SME market represents the largest segment of the Canadian economy.

Professional and experienced management team

• Professional and experienced management team

• Management has significant credit, restructuring and turnaround experience and extensive relationships within the investment community providing for strong deal sourcing

Investment Thesis

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Sprott Bridging Income Fund LP (the “Fund”)

Composition Private debt is approximately 75% of the SBIF portfolio with the rest being factoring. There are approximately 60 loans and over 1500 receivables in the Fund.

Loan characteristics All the loans are demand facilities and are Prime-rate based, which reduces interest rate risk. There is always a defined exit at the outset which tends to be Tier-One banks.

Duration The duration of the Private Debt loans is approximately 7 months and for factoring is 55 days.

Collateral The Private Debt Loans are over-collateralized and utilizes a forced-liquation valuation instead of market valuation, as assessed by 3 rd party valuation firms.

Portfolio

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Sector Allocations

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Sector Allocation (%)

Financial Services 21%

Manufacturing 14%

Fisheries 13%

Building Supplies/Construction 13%

Renewable Energy 11%

Food and Beverage 10%

First Nations 7%

Logistics 7%

Other 4%

Total 100

Allocations as at July 31, 2015


Performance

Add distributions paid Monthly Returns of Sprott Bridging Income Fund LP Reference Series of Class A

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD

2015 0.91% 0.61% 0.67% 0.51% 0.64% 0.56% 0.83% 0.70% 5.56%

2014 0.68% 0.71% 0.82% 0.68% 0.64% 0.68% 0.75% 0.74% 0.87% 0.81% 0.67% 0.86% 9.28%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD

2013 - - - - - - - - - - 0.11% 0.63% 0.74%

As at August 31, 2015. November 2013 returns are from November 21, 2013 inception date.

Compounded Returns of Sprott Bridging Income Fund LP Reference Series of Class A

1 MTH 3 MTH 6 MTH 1 YR INCEPTION

0.70% 2.10% 3.97% 8.99% 8.83%

As at August 31, 2015


Financing Flexibility> We provide flexible financing solutions to companies that

may be overlooked or underappreciated by larger financial institutions. We act quickly and are very responsive to Borrower requirements.

Deal Sourcing> Management has strong contacts in financial institutions,

legal community, accounting firms and in industry which provide a constant flow of new opportunities.

Professionalism and Reputation> We maintain high standards of professionalism and have

developed a strong reputation earned through providing a positive experience for advisors, and clients; and maintaining the highest standards of integrity and professionalism of conduct.

Value PropositionWhy Borrowers choose Bridging Finance

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Summary of Sprott Bridging Income Fund LP Offering

Fund Status OM, Exempt Market, Continuous Offering

Minimum InvestmentFor Accredited Investors, $5,000 minimum

$150,000 pursuant to minimum amount investment exemption

Trailer Fees 1% per annum, paid monthly Class A

SecuritiesClass A Limited Partnership Units (basic accounts)

Class F Limited Partnership Units (fee-based accounts)Class I Limited Partnership Units (institutional accounts)

Distributions Monthly

Redemptions Monthly with 30 days notice

Management FeeClass A Units: 2%Class F Units: 1%

Class I Units: Fee determined by agreement between the Manager and Subscriber of Class I Units

Performance Fees See Offering Memorandum

Risk ProtectionIf target minimum yield is not met, the applicable portion of the Management Fee net of dealer fees will be

waived until the target minimum yield is reached

Interest Rate Protection The Target Minimum Yield and Hurdle Rate will fluctuate with movements in the Prime Rate

FundSERV Contact your Sprott Sales Representative for Fund Codes

Sprott Bridging Income Fund LPOffering Overview

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Sprott Asset Management LPRoyal Bank Plaza, South Tower200 Bay StreetSuite 2700, PO Box 27Toronto, ON M5J 2J1

T: 416 943 6707Toll Free: 866 299 9906F: 416 943 6497

Email: [email protected]: www.sprott.com

Contact Information

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sprott bridging income fund lp september 2015 formerly bridging credit fund lp. effective july 25,...

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