Prestige Funds Adds New US Strategy To Its Product Range
Direct lending specialist Prestige Group is adding a new US strategy to its existing range of alternative credit funds.
Business Finance Opportunities (BFO) is focusing on asset-based lending in short and medium-term commercial loans, specifically in the United States. The loan portfolio will be managed by dedicated, specialist finance arranger Capstone Capital Group, a U.S.-based private lender focusing on invoice and factoring finance. Established in 1990, New York based Capstone has originated over $6bn in transactions since its inception.
The Cayman Islands-domiciled BFO will invest in a diversified portfolio of secured finance opportunities across a broad range of commercial and industrial sectors. Most of the financing activity will be secured against assets including accounts receivable, inventory, equipment, machinery, and real estate. The fund will be aimed at institutional investors looking to diversify their investment portfolios in a strategy that has a low correlation to traditional bonds and equities; the fund will operate as an open-ended vehicle although it will have monthly liquidity on 90-180 days and will be available in accumulation and distribution share classes in GBP / USD / EUR currencies. The fund will operate without leverage or performance fees. Prestige is targeting $50-100mn of assets in year one, although the firm says that the current investible opportunity pipeline stands at $250mn over the next 1-2 years.
Craig Reeves, Founder of Prestige group commented:
“We believe it is timely for us to be bringing Business Finance Opportunities to investors. The US government has made progress in the battle against the COVID19 virus and many of the core sectors BFO lends to will be beneficiaries from projected increases in US government spending. In some respects, COVID19 has made investment and business decision making quite ‘binary’ in so far as it is easier to identify the winners in individual commercial sectors. The BFO portfolio provides debt-based exposure to American SMEs at a crucial period of economic growth, managed by a highly seasoned US-based team of finance professionals.”
Joseph Ingrassia, Managing Member at Capstone Capital Group added:
“We are emerging from some very challenging times in the US smaller company private finance sector, but this part of the US economy looks set to improve its prospects. Many companies in areas like construction, for example, rely on private finance to operate efficiently. We are looking forward to playing an active role in helping America to rebuild.”
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