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IW Capital closes first secured debt fund

IW Capital – a debt, equity and EIS investment specialist based in the heart of Mayfair – has closed its first secured debt fund. The GBP2.0million Fund is the first in a series of diversified investment vehicles that IW Capital has launched over the past few months. 

With the close of this first senior debt fund, IWC has now raised circa GBP10 million to support SME Funding.
The Fund will operate for three years, with a 12-month run-off period, and will aim to pay investors a minimum return of 7.0 per cent per annum. If returns have exceeded this level at the end of the Fund’s life, then any income or capital gains in excess of this target future will be returned to investors and IW Capital on a 50:50 basis.

Presenting a sector agnostic approach, investors’ funds are allocated across a diverse portfolio of loans supporting profitable and established businesses. All lending is secured by a mortgage debenture over the borrower’s assets, and any wider security needs have been met based upon a case-by-case appraisal. Consistent with IW Capital’s robust approach to loan structuring, all loans include financial covenants and quarterly reporting obligations on the part of the borrower.

Luke Davis, CEO and founder of IW Capital, says: “With the ongoing disintermediation of the UK alternative finance arena, we are seeing greater than ever demand from SMEs for more diversified funding options. IW Capital has championed this shift in the industry over the course of the last decade- first through equity and EIS, then with the launch of our debt arm and now with this secured fund. It is an incredible milestone for IW Capital, and I’m very proud of the team who have come together to make this all possible.”

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