Deans Knights clients are predominantly high net worth individuals and families located around the globe. Deans Knight tailors each client account to provide capital growth, an income stream, or a combination of both, depending on the clients needs.
Deans Knight was the first investment management firm in Canada to specialize in higher yielding corporate debt securities. For those clients who require income, we offer a strategy that aims to identify opportunities in debt and debt-like securities, typically rated below investment grade. This approach provides clients with a high level of income while preserving and potentially growing client capital. We do this through comprehensive in-house credit research which involves analyzing trust indentures, as well as evaluating company assets and the sustainability of their cash flows to ensure our capital is adequately protected in case of a default.
To enhance rates of return we create and structure private debt financings. These structures typically offer a high coupon, they have equity upside via warrants or convertible features, and they often provide security over the company’s assets. These opportunities come to us through our network of industry contacts or through companies in which we have equity interests.
Throughout our long history, the income strategy has produced returns that not only exceed those of Government and corporate bonds, but all the major North American equity indices as well.
The Deans Knight Private Credit Limited Partnership is designed to provide an alternative source of debt financing to small and medium-sized businesses primarily in Canada and the United States. The Partnership will invest in privately negotiated transactions that offer compelling risk-adjusted returns, are structured to provide downside protection, and may include equity-like features that provide upside participation. For more information, please contact us
For clients interested in capital growth, we invest in the equity of 15-20 companies, typically publicly traded entities.
We conduct our own detailed in-house research to find businesses with assets that provide a sustainable competitive advantage, reliable cash flows, hard book values, and strong balance sheets. We must also be comfortable that we are investing in management teams we can trust and who are financially committed to the company to ensure the alignment of our interests. While the above characteristics are important, the most valuable decision we make is the price we pay for a business. The lower the purchase price, the higher the rate of return.
Another key advantage offered by Deans Knight is our broad international network of industry experts, entrepreneurial clients, and financial intermediaries. Many of our clients are successful entrepreneurs who offer informed perspectives into their various industries, as well as access to exclusive investment opportunities.
The principal objective of the Resource Fund is capital appreciation by exclusively investing in high quality natural resource businesses. Our investment management expertise combined with the technical skills of the JDS Group will provide the Fund with superior insight to identify, evaluate and invest in resource companies worldwide. Natural resource investing is an inefficient market and Deans Knight and the JDS Group bring their complimentary expertise in active management and resource development, targeting long term wealth creation by owning natural resource businesses. The average investor has very little exposure to resources as their weighting in major markets has declined during the last decade of commodity bear markets and technology dominance. The Resource Fund is designed to provide investors access to the “staples of life” by investing in real businesses with best-in-class management.
Deans Knight Income Corporation
In late 2008 Deans Knight recognized a unique investment opportunity in the Canadian High Yield Bond Market. We subsequently raised $100 million in the IPO of Deans Knight Income Corporation (DNC-T). Deans Knight Income Corporation is an investment company focused on investing in corporate debt securities, predominantly rated below investment grade. The Company’s objective is to maximize the total return for shareholders, consisting of bond price appreciation and income received from bond investments. For more information about Deans Knight Income Corporate, please follow the link below: