Invest in Canadian Industrial Growth
Gear Capital offers investors access to an asset-backed private credit strategy focused on equipment financing for Canadian industry and defence supply chains.Target returns supported by productive assets and disciplined underwriting.
Investment Strategy
Gear Capital provides loans and leases secured by productive equipment used by Canadian businesses to expand operations.
Instead of lending against real estate, we lend against assets that generate revenue — machinery, vehicles, and industrial equipment.
The strategy combines private investor capital with institutional funding over time to create a scalable specialty finance platform.
Why This Opportunity Exists
Three major forces are driving demand:
Canadian Industrial Expansion
Manufacturing and infrastructure investment is increasing across the country.
Defence Spending Growth
Government policy is prioritizing domestic production and supply chain resilience.
Bank Financing Gaps
Traditional lenders often cannot finance specialized equipment or rapid growth situations.
Many are expanding to meet new demand across Canadian industry and supply chains.
Target Returns
Early Stage:
10% – 12% annually
With Institutional Leverage:
12% – 18% potential
Investment Highlights:
- 8% preferred return structure
- Profit participation above preferred return
- Asset-backed lending strategy
- Equipment collateral security
- 3–5 year loan terms
- Diversified industrial portfolio
- Sponsor capital invested alongside investors
Risk Management
Conservative underwriting is central to the strategy:
- 65–70% maximum loan-to-value
- Borrower equity required
- Personal guarantees
- First-priority PPSA security
- Insurance coverage with lender loss payee
- Focus on equipment with resale markets
- Diversified portfolio exposure
- GPS Tracking
Competitive Advantage
Gear Capital is built on the experience and infrastructure of Draft Financial, including:
- Secured lending expertise
- Investor capital management
- Underwriting discipline
- Enforcement and recovery capability
- Established operational systems
This foundation significantly reduces execution risk compared to a typical startup.
Alignment With Canadian Priorities
Gear Capital supports:
- Domestic manufacturing growth
- SME productivity
- Job creation
- Industrial modernization
- Defence supply chain resilience
This alignment strengthens long-term demand and institutional financing potential.
Growth Plan
Phase 1 — Initial portfolio development
Phase 2 — Limited Partnership expansion
Phase 3 — Institutional leverage (e.g., BDC facility)
Phase 4 — National scale within industrial sectors
The long-term objective is to build a large, diversified private credit platform tied to Canadian industrial productivity.
Investor Inquiries
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Investor Disclaimer
The information provided on this website is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities or investment products. Any investment opportunities referenced are subject to applicable laws and regulations and may only be available to qualified investors.All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Any investment opportunity will only be offered through appropriate legal documentation and after review of the investor’s suitability.Gear Capital does not guarantee returns or investment performance.