5th Edition– The Alta West Summit
Part 1 – AWC’s Investment Management Philosophy
In every market cycle, there are those who chase aggressive returns and others who modestly select for the long-term. While explosive returns can appear dazzling, they can also lead to explosive failure. We believe that the road to success is paved with discipline. Recent events in the Canadian lending and real estate sectors have only reinforced this mantra (see part 3). Across all our funds, we maintain predetermined underwriting guidelines, reviewing every deal that enters our MICs. To date, this has resulted in neither First Place nor Diversified experiencing a loss of investor principal. We hope that they serve as the worry-free investment in your portfolio, flowing steadily towards your financial goals! It’s not a tsunami, but the never-ending flow of a river will cut through mountains. This past quarter, that discipline has once again delivered; both funds have met their performance targets. In a global market that has yet to find its balance, slow and steady continues to win the race when explosive returns blow up in your face.
Reflecting this, Wendy McKenna, Chief Compliance Officer, states:
Wendy McKenna
Chief Compliance Officer
“We have once again commissioned Fundamental Research Corp. (FRC), a large research firm, to do a report on AWM Diversified MIC.
For the fourth consecutive year, FRC has awarded us a Rating of 2, recognizing our very good return-to-risk ratio. Even more impressively, they’ve highlighted our continued success in maintaining a below-average risk profile for AWM Diversified investments.
Results:
- Rating of 2 (Very Good Return to Risk Ratio): We’ve continued to deliver strong returns while keeping risks well-managed.
- Below Average Risk for Diversified: Our steadfast approach is being recognized for keeping risk lower than average.
This is a direct result of the incredible teamwork and collaboration across all stakeholders.”
Part 2 – The Broker’s Mortgage Market Monitor
After more than two years of tightening, the Bank of Canada now continues its long-anticipated easing cycle, which marks a turning point for borrowers and brokers alike. As rates fall, demand rises. As such, AWC has been rolling out new and modified PRODUCTS for our broker partners.
We are seeing rental inventory rising and rents beginning to ease. As a result, some landlords may seize the chance to acquire low-cost properties, while others may choose to exit. For Alta West Capital, these dynamics signal renewed opportunity in residential lending, which acts as the absolute foundation of our business. As such, AWC has developed a product specifically designed for the purchase of RENTAL PROPERTIES.
Armando Diseri
Chief Sales Officer
Part 3 – Industry Developments: Gating and Liquidity within the Credit Markets
Brent Shaw
Chief Risk Officer
Recent headlines in the private lending space have drawn attention to liquidity challenges among several large commercial lenders. Such moments remind us how quickly the best laid plans can be overturned by market realities. Not all MICs are the same and it is important to understand how they can differ; some choose a much more speculative composition of real estate: these may include development land, construction in rural locations or commercial developments or properties that are yet to be green-lit by municipalities. In contrast, our MICs are comprised almost entirely of residential mortgages that are exclusively Canadian. They are filled with individual homes in urban and suburban markets where value is tangible and demand is strong, ensuring that liquidity issues do not scale the same way as speculative development loans; there are millions of Canadians looking to purchase residential owner-occupied homes, but few who are looking to take over a massive commercial development. The result for AWC is a residential portfolio that is diversified and possesses solid collateral in the form of a weighted average LTV ratio across all funds of less than 70%. Furthermore, the borrower of AWC products is encouraged with their Mortgage Broker partner, to work towards their successful graduation to a lender who provides a different mortgage opportunity, which further helps to reduce the portfolio risk incurred for the funds. The additional benefit to consider in AWC’s credit products is the layers of scrutiny the portfolio mandate undergoes; from underwriting due diligence, to the lending committee, to the MIC Directors, and the Investor Advisory board, all serve to adhere to compliance, underwriting strictures and our funds’ mandated risk profiles.
While our portfolios cannot match the liquidity of the equities market, they are also not linked to them and therefore do not trace its volatility. It is a fine balance, and AWC has found its own sweet spot in that of the residential mortgage loan. The investor receives a risk-adjusted return, and the broker can proudly offer their client a mortgage opportunity that fits their unique situation.
“The recent news regarding the illiquidity of some other Canadian lenders underpins the driving values of our company: discipline in underwriting, transparency in communications, sound governance, and the commitment to aim to put all stakeholders of AWC into a better position, after having done business with us.”
~Brent Shaw
If you want to learn more about our investment funds, please contact our Investor Relations team
If you are interested in learning more about our mortgage products,
book a meeting with our Sales team.
Part 4 – Client Testimonials
As the saying goes, show me someone’s friends and
I will show you who they are. See what our stakeholders
have to say about Alta West Capital
Investor Testimonial
Broker Testimonial
Part 5: AWC and Premiere – Staying The Course
This year marks an important milestone in AWC’s evolution: the acquisition of Premiere Home Mortgage. Premiere’s four-decade legacy in the lending community complements AWC’s disciplined approach to fund management, uniting two firms that share a common philosophy of consistency, integrity, and service to stakeholders. John and Franca Mercuri, along with their talented staff, have done a fantastic job of providing consistent returns year after year (2024-25 being their highest-yielding year ever). George Botros, CEO of AWC, stated that,
“This merger brings together two of Western Canada’s most successful alternative lenders. We are quite excited about what the future will hold. Together, we move forward with synergetic strength and a broader national footprint. The addition of Premiere expands AWC’s reach and enhances our origination capacity, leaving our core of sound underwriting, stable returns, and the careful stewardship of investor capital focus unchanged.”
Growth, for AWC, has never been about scale alone. It is about fulfilling the company’s goal of unlocking possibilities for all. Now we can do that more than ever. We are proud to welcome the Premiere team into the AWC family, enhancing our abilities to serve our stakeholders and safeguard their investments, while offering brokers maximized opportunity. Alta West Capital plans on staying the course in this trajectory of growth.
Part6 – Philanthropy News
In light of unlocking possibilities together, watch how the team unlocked possibilities for families in El Salvador!
Thank you, and we here at AWC hope you’ve enjoyed our newsletter. We strive to be a reliable and engaging source of relevant information pertaining to the alternative lending space and the Canadian real estate market as a whole.
Alta West Capital is registered as an Exempt Market Dealer (“EMD”), Restricted Portfolio Manager (“RPM”) and Investment Fund Manager (“IFM”) in the province of Alberta. The firm is also registered in the provinces of British Columbia, Ontario, Manitoba, Saskatchewan and Yukon as an EMD. This information is directed only to residents of those provinces. For more information, contact Investor Relations at (403) 254-9075 ext. 4218 or by email . This communication is only directed to persons in these jurisdictions. Alta West Capital holds a mortgage broker license in British Columbia, a mortgage brokerage license in Alberta and Ontario, as well as a mortgage administration license in Ontario. FSRA Brokerage License 12633, FSRA Mortgage Admin License 12634.
The opinions, analysis and information contained herein are current as of the date indicated, and Alta West Capital does not undertake to notify the reader of any subsequent change. Any information is not intended to constitute tax advice. Alta West Capital has not taken any steps to verify the accuracy and completeness of any third-party data referenced herein.
Fund information contained herein or in any video is for general information purposes and is not intended to be a solicitation or recommendation nor is it intended to serve as a full or comprehensive description of the funds managed by Alta West Capital. Important information regarding the funds is set out in the offering document and Relationship Disclosure document, which should be reviewed prior to investing. Please contact us for a copy of these documents. Units of the MICs are not available for public distribution and may only be purchased by qualified investors. Past performance is no guarantee of future results. Actual performance will vary.
