Mon, Jun 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Prestige and Metexis launch Commercial Finance fund

Monday, September 02, 2013
Opalesque Industry Update - The affiliation between the international investment operation Prestige and Methexis Capital has borne first fruit with the launch of Commercial Finance Opportunities (CFO), a fund specializing in secured lending to private companies, in the UK.

The arrival of CFO follows quickly on the announcement (12/08/2013) of the purchase by Prestige Fund Management of a significant equity stake in Methexis Holdings (Isle of Man), the parent company of Methexis Capital Advisors LLP, a UK based FCA regulated investment adviser.

The new Fund, structured as a Luxembourg-registered SICAV-SIF, invests in a diversified portfolio consisting of short-term commercial and industrial Account Receivables and is currently offered to experienced investors in five currency classes with a minimum initial investment of EUR€125,000 (or equivalent).

CFO employs an absolute-return strategy designed to outperform traditional investments in terms of annualized market-based volatility risk. This is achieved via a diverse portfolio that manages individual client and sector asset allocation risk and generates a steady stream of interest income with low default risk both on individual cases and the wider asset class. All transactions are secured on assets (typically outstanding invoices of underlying customers) together, often, with personal guarantees and charges on property pledged by the Directors of the borrower.

“The launch of CFO is a response to the increasing popularity, among investors, of non-market based / private finance investment strategies which typically offer attractive consistent positive returns with lower volatility and correlation to traditional equity and fixed income strategies,” said Craig Reeves, Director and Founder of PFM.

“In the last five years, Prestige and its affiliates have become leading players in this niche area and now operate and advise on over US$400m for a wide range of clients in this space alone. The launch of CFO, as a multi-currency class SICAV, brings this important investment strategy to a still broader investor group. Additionally with UK bank lending to small and medium sized companies remaining significantly lower than 5 years ago there remains a significant opportunity to fill some of the gap in funding,” Reeves added.

CFO is targeting capital appreciation of 6%-8% net p.a. on the back of annualized volatility of 1% p.a. This low volatility growth objective reflects the multi-income stream portfolio which is diversified across six financing categories:

Factoring Purchasing businesses’ account receivables at a discount. The lender will be receiving the payments on the invoices directly from customers and repays the remaining value of the invoices to the borrower minus a fee.

Invoice Discounting This is similar to factoring but the credit control and follow-ups are done by the borrowing company instead of the lender.

Bridge Financing Loans guaranteed by assets such as real estate, publicly traded stock, machinery and equipment, royalties and account receivable.

Trade and Commodity Financing Financing of pre-export commodities.

Inventory Financing Loans made to manufacturers using inventory as collateral.

Floor Plan Financing Credit is provided to purchase high-priced goods, the loan will be secured by the product ‘on the floor’.

CFO’s five currency classes are Euros, US Dollars, Sterling, Swiss Francs and Swedish Kroner. Subscriptions are monthly and redemptions are monthly on 30 days’ notice.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  2. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  3. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  4. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  5. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to