Mon, Dec 22, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und