Wed, Sep 2, 2015
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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner