With its robust resources industry and stable economy, Canada is a favoured investment destination of private companies and state-owned enterprises (SOEs) on the mainland looking to diversify their portfolio. Paradigm Capital's long-standing ties with Canadian companies and in-depth knowledge of capital markets make it the reliable partner in assessing the merits of investment opportunities for long-term growth.
A partner-owned investment dealer, Paradigm is distinguished in the market for its independent outlook and high level of client engagement. Providing equities research, sales and trading services, investment banking services, including capital raising and advisory work, it specialises in the mining and oil and gas industries. It is also focused on growth sectors in North America such as technology, entertainment, biotechnology, health care and industrial products. Paradigm's corporate client base consists of companies listed on the Toronto Stock Exchange (TSX), some of which are also listed on the Australian Securities Exchange (ASX).
"What has always stood out from the inception of Paradigm has been the firm's major focus on research. This is an independent firm that generates investment ideas for its institutional clients and we take pride in our consistent approach in an era when the independent firms are a vanishing breed," says Ian Joseph, president of Paradigm, also a long-time client before joining the firm.
Paradigm has dedicated research teams in each of its focus areas. The firm's investment banking arm accepts engagements only from corporate clients vetted by the research department, thereby promoting a culture of "total engagement" between firm and client. Moving in stride with its customers in an ever-evolving landscape, Paradigm ventured into international markets early on, committing its resources to an in-depth understanding of how best to create value for its client base.
This is reflected in its increasing exposure to the Australian market and deepening ties with mainland and other Asian interests. Strategic alliances between mainland investors and Moly Mines, Marengo Mining and Anvil Mining - all Australian firms dually listed on the TSX and the ASX - showcase Paradigm's capacity to fuse capital with investment opportunities to help bring an industry to the next level.
Moly Mines' transition into iron ore production is one such market breakthrough. Moly Mines acquired HK$3.8 billion in debt financing from the China Development Bank as part of its strategic alliance with the Hanlong Group. The debt facility is intended for Moly Mines' molybdenum prospect, which positions the company well for the long term in the global metals market. Paradigm led all of Moly Mines' capital raisings and assisted in its TSX listing.
Marengo Mining, another long-time client, has advanced the development of its copper assets in Papua New Guinea (PNG) with broad impetus from Paradigm's capital-raising activities. Marengo Mining has entered a partnership with China Nonferrous Metal Industry's Foreign Engineering and Construction (NFC), a subsidiary of the state-owned China Nonferrous Metal Mining. Among the mainland's leading engineering procurement and construction groups, NFC will be the principal contractor on Marengo Mining's PNG project. NFC will also help with financing from mainland banks for the PNG project.
"There is an interest among SOEs to conduct more business in this part of the world," says David Roland, CEO of Paradigm. "We are also developing some of the very interesting relationships among the private equity community in China along with some of the entrepreneurs who have been successful in different industries. We certainly see the opportunity to do more business with these groups in the future."
Paradigm was also an adviser in the acquisition by MMG Malachite of Anvil Mining, which has been operating a copper mine in the Democratic Republic of Congo since 2002. MMG Malachite is a unit of Hong Kong-listed Minmetals Resources.
From its unique position in the Canadian markets, Paradigm intends to keep building its practice in advising mainland companies on their initiatives to access investment opportunities abroad. Paradigm is also well equipped to help Asian companies understand the business climate and regulatory requirements in the Canadian markets.
"Loyalty is a big factor that governs the activities of Paradigm Capital. We have a shared history with all our clients, so our relationships tend to be very long with a lot of repeat customers. We seek to replicate that in every aspect of our business," Joseph says.