Sat, Jan 20, 2018
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. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager