Prestige Funds, is launching two new distribution share classes for its recently launched Prime Alternative Finance – Luxembourg SICAV.
The Fund is an open-ended direct lending operating in both asset finance and project finance focusing on the UK agriculture sector, particularly SMEs.
The new share classes are:
• Distribution ID share classes are aimed at institutional investors with a minimum investment of EUR 1,000,000 (or currency equivalent) and quarterly liquidity (on 90 days’ notice)
• Distribution D share classes are aimed at advisory investors with a minimum investment of EUR 125,000 (or currency equivalent) and quarterly liquidity (on 30 days’ notice)
All of the above share classes will ultimately be available in hedged EUR / USD / CHF / SEK and GBP currencies.
The launch of these new share classes was prompted by increased investor interest in the Fund’s strategy from both institutional and advisory clients. The new classes will help to generate more liquidity for investors’ portfolios that will be similar to a bond coupon or an equity dividend.
Although Prime Alternative Finance only launched in December 2018, it is expected to surpass USD50m AUM sometime in Q4/2019 and operates in a similar way to the long established ‘Prestige Alternative Finance’ which has over USD700 million AUM and has been successfully lending for over ten years.
Prime Alternative Finance produces returns which are not correlated to bond or equity markets by lending to businesses and infrastructure projects across the UK’s rural economy. It also provides a vital source of commercial funding for these businesses and supports critical job creation at a time when commercial banks are withdrawing from the sector.
Craig Reeves (pictured), founder of Prestige Funds, says: “Some investors are looking for a cash yield rather than an accumulation yield. We are seeing more and more interest in this strategy from investors globally as the private debt asset class matures and occupies a more important part of investor portfolios.”
“We are in an investment climate where most Eurozone government bonds are providing zero or even negative yield,” says Reeves. “It is not surprising that a wider range of investors are now actively involved in or seriously contemplating private debt as an asset class.”
