Investment Funds


MarshallZehr First Mortgage Fund LP

The MarshallZehr First Mortgage Fund’s primary objective is to generate interest income by providing construction financing to Canadian developers. The Fund invests in the most secure portion of the debt stack that, traditionally, has been provided by ‘Tier 1’ lending agencies such as Canadian Banks, Trust Companies and Credit Unions.

The Strategy

The Pool primarily invests in development and construction mortgages secured by Real Property situated in Canada. Capstone diversifies the portfolio of mortgage investments by type, location, duration and risk while maintaining consideration for the state of the economy, financial markets and the Canadian real estate market.

Together with the Covenant Mortgage Pool and the MarshallZehr Mortgage Opportunities Fund, the MarshallZehr First Mortgage Fund provides investors with access to mortgage investments across a broad range of risk and security levels.

Quick Facts

Date Launched July 2016
Manager Capstone Asset Management Inc.
General Partner R3 XL Capital Inc.
Distributions Monthly, Cash or Units
Liquidity Bi-Annual (January & July), 180 days after purchase. Subject to 90 days notice.
Eligibility Not eligible for registered accounts.


$CDN Class Load Type Total Fee* Min. Inv.
CVT2001 A FE 1.90% $150,000
CVT2011 F NL 0.90% $150,000
CVT2021 I NL 0.65% $3,000,000
CVT2031 O NL 0.50% $10,000,000
CVT2041 N NL Negotiated $50,000,000

Individual purchasers must qualify as Accredited Investors.
*Comprised of the Manager's Fee and the General Partner's Fee.


The Opportunity

  • Participate in a fund that invests in high yielding, Canadian construction mortgages
  • Regular cash flows are available
  • Access first and second mortgages that:
    • Typically are only available to Banks
    • Have terms less than three years
    • Provide real property as security
  • Excellent alternative to cash equivalent funds
  • Attractive risk adjusted returns


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