The company is expanding its SME loan proposition with the new portfolio.
IW Capital, an investment firm specializing in debt, stocks and EIS, has launched its first secured debt fund raising £ 4.5million.
The fund will be the first in a series of diversified investment vehicles that IW Capital plans to launch in the coming months as part of a £ 100million strategy to invest in growth finance for UK SMEs in 2018/19. The company says it’s in direct response to the growing attraction its secured debt offering has gained in the market.
With the new fund, IW Capital is primarily targeting the high net worth and family office market, but says the portfolio will also be positioned to attract investment from the broader IFA and retail investment arena. .
The fund will operate for three years and then there will be a 12 month wind-up period. It will aim to pay investors a minimum return of 7% per annum and if the returns have exceeded this level at the end of the life of the Fund, then any income or capital appreciation exceeding this future objective will be returned to investors and to IW Capital. on a 50:50 basis, the company says.
“All loans will be secured by a mortgage bond against the borrower’s assets, and any broader security needs will be met on a case-by-case basis. In line with IW Capital’s robust approach to loan structuring, all packages will include financial covenants and reporting obligations on the part of the borrower.
Luke Davis (on the picture), the CEO and Founder of IW Capital said: “With the continued disintermediation of the alternative finance arena in the UK, we are seeing greater demand than ever from SMEs for more financing options. diversified ”.