Stornoway Portfolio Management

What Stornoway Portfolio Management does

Stornoway Portfolio Management Inc. is an employee-owned, Toronto-based asset management firm founded in 2004 by Scott Reid. The firm manages two investment vehicles: the Stornoway Recovery Fund LP, an Ontario limited partnership that invests in debt, equity, trade claims, and other instruments of financially distressed small and mid-cap Canadian corporations in various stages of revitalization, and the Ravensource Fund (TSX: RAV.UN), a TSX-listed closed-end fund pursuing absolute annual returns through deep-value investments in high-yielding, distressed, and special-situation equity securities in North America. The investment team conducts extensive fundamental analysis and uses its expertise, experience, and professional network to play an active role in restructuring and other value-enhancing initiatives at portfolio companies, distinguishing the firm from passive distressed-debt investors.

The firm's revenue model is built on management fees and performance fees (carried interest) earned from the two funds it manages, a recurring subscription-style fee structure characteristic of closed-end fund managers. Distribution occurs via two channels: qualified-investor private placements into the Stornoway Recovery Fund LP and public-market trading of Ravensource Fund units on the TSX. The firm is registered with the Ontario Securities Commission as an Investment Fund Manager, Portfolio Manager, and Exempt Market Dealer, and operates in compliance with Canadian privacy legislation including PIPEDA.

The investment team is small and led by two key professionals: Scott Reid (President & CIO, CFA, 15+ years of distressed-securities experience, former co-founder of National Bank Financial's High Yield Group) and Daniel Metrikin (Principal & EVP, Investments, Wharton/Stanford-educated, joined in 2017 with prior roles at H.I.G. Bayside Capital, Oaktree Capital Management, Gluskin Sheff & Associates, and Houlihan Lokey) (WXG FQFQV45). The firm is headquartered at 30 St Clair Ave West, Suite 901, Toronto.

Name

Stornoway Portfolio Management

Legal name

Stornoway Portfolio Management Inc.

Website

https://stornowayportfolio.com

Company type

Private

Founded year

2004

Operating status

Operating

Short description

Stornoway Portfolio Management is an employee-owned Toronto-based asset manager founded in 2004 that manages distressed-securities and turnaround-investment strategies through the private Stornoway Recovery Fund LP and the TSX-listed Ravensource Fund (RAV.UN). The firm targets institutional and high-net-worth investors seeking exposure to small and mid-cap Canadian and North American distressed opportunities.

Ownership category

akta.pro rank

Product category

Alternative Asset Management (Distressed & Special Situations)

NAICS

Portfolio Management and Investment Advice (523940), Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Stressed / Rescue Financing Funds (FSANAKAE)

Keywords

• Distressed securities investing
• Asset management services
• Special situation equities
• Closed-end fund management
• Turnaround investment funds

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others, Technology or R&D

Revenue model

1. Fund Management Fees: Generates revenue through management fees and performance fees (carried interest) from managing the Stornoway Recovery Fund LP and the Ravensource Fund (TSX: RAV.UN).

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Stornoway Portfolio Management is an employee-owned asset management firm that manages two investment funds: the Stornoway Recovery Fund LP, a private Ontario limited partnership investing in the turnaround and recovery of financially distressed small and mid-cap Canadian corporations, and the Ravensource Fund (TSX: RAV.UN), a closed-end fund pursuing absolute returns through deep-value investments in high-yielding, distressed, and special situation North American securities. The firm conducts extensive fundamental analysis and actively participates in corporate restructuring on behalf of fund investors.

Product overview

Stornoway Portfolio Management is an employee-owned asset management firm offering two distinct investment fund products focused on distressed securities and recovery investments. The Stornoway Recovery Fund LP is an Ontario limited partnership targeting turnaround and recovery of financially distressed companies through investments in debt, equity, trade claims and other instruments, primarily in small and mid-cap Canadian corporations. The Ravensource Fund is a TSX-listed closed-end investment fund (RAV.UN) pursuing absolute annual returns through deep-value investments in high-yielding, distressed securities, and special situation equities. The two funds serve complementary roles in the distressed securities investment space, with the Recovery Fund focusing on Canadian distressed opportunities and Ravensource expanding to North American securities.

Differentiator

Problem solved

Functional benefit

Brands

• Stornoway Recovery Fund LP: An Ontario limited partnership focusing on capturing value from the turnaround and recovery of financially distressed companies, seeking long-term capital appreciation through investments in debt, equity, trade claims and other instruments.
• Ravensource Fund

Products and services

• Stornoway Recovery Fund LP
• Ravensource Fund (TSX: RAV.UN) A closed-end investment fund listed on the Toronto Stock Exchange (TSX: RAV.UN) that seeks to achieve absolute annual returns through deep-value investments in high-yielding securities, distressed securities, and special situation equity securities in selected North American securities. Available to public market investors.

Named customers2 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered minor.

• H.I.G. Bayside CapitalminorOthersFormer employer of Daniel Metrikin (VP at H.I.G. Bayside Capital in New York focusing on stressed and distressed credit opportunities). Not a current partnership.
• National Bank FinancialminorOthersFormer employer of Scott Reid who co-founded National Bank Financial's High Yield Group prior to founding Stornoway. Not a current partnership.

Scale indicators2 records

Recent moves3 records

Expansion highlights3 records

Broad incumbents

• Sprott Inc. Toronto-headquartered alternative asset manager offering listed closed-end funds and private strategies across resource, credit, and specialty mandates. Comparable as a larger Canadian-listed alternative platform with overlapping distribution and fund structure characteristics.
• Brookfield Asset Management: Toronto-based global alternative asset manager with credit, restructuring, and special situations strategies. Comparable as a larger incumbent operating in the same distressed/restructuring category with broader product range.
• Oaktree Capital Management: Global leader in distressed debt, special situations, and credit strategies; Daniel Metrikin's former employer. Comparable as a broad incumbent in distressed investing with overlapping investment philosophy.
• Apollo Global Management: Global alternative asset manager with a large credit and distressed franchise. Comparable as a broad incumbent competing for the same distressed opportunities at a much larger scale.

Direct peers

• PenderFund Capital Management: Canadian boutique asset manager running several pooled funds across credit and special situations for institutional and retail investors. Comparable to Stornoway's small-team, multi-fund Canadian boutique model.
• Cipher Capital Management: Toronto-based investment manager focused on distressed and high-yield credit opportunities. Closely comparable to Stornoway's Recovery Fund mandate and small-team operating model.
• Polar Asset Management Partners: Canadian alternative investment firm running special situations, credit, and event-driven strategies. Comparable to Stornoway as a small, specialist Canadian alternatives manager with institutional focus.
• Brigade Capital Management: U.S.-based credit-focused asset manager specializing in distressed and special situations credit strategies. Comparable to Stornoway's Recovery Fund in strategy focus, though operating primarily in the U.S. market.
• Canso Investment Counsel Ltd. Canadian fixed-income and credit manager running pooled funds and separately managed accounts, including exposure to distressed and high-yield securities. Comparable to Stornoway as a domestic credit-focused boutique.
• Marret Asset Management Inc. Toronto-based alternative investment manager specializing in distressed debt, high yield, and credit strategies for institutional clients. Directly comparable to Stornoway's Canadian distressed and credit focus.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Stornoway Portfolio Management