The Equifinance Loan Fund is aimed at the High Net Worth/Sophisticated Investor market.
Mike Healy, head of investor relations, said: “With continuing poor yields investors are losing out to inflation.
“Equifinance Loan Fund provides an attractive return from a wholly transparent source.
“The Fund will invest in SLP Loan Notes issued by Equifinance, the secured lender which is rapidly growing its loan book following launch in 2011.”
The Equifinance Loan Fund offers qualifying investors the opportunity to benefit from an indirect involvement in the UK second charge, secured loan market.
The Fund aims to capitalise on the liquidity shortage in the UKlending market by providing funding to the Specialist Lending Partner, Equifinance, who will then offer “Loans” to qualifying borrowers whilst charging a premium rate of interest that will enhance returns to prospective investors.
The fund is in a UK tax transparent limited partnership structure (with an exempt unit trust for SIPPs, SSASs, charities and other tax-exempt investors) and domiciled in the United Kingdom.
Available to individual, SIPP, SSAS, corporate, charity and institutional investors.
Participations will be issued at £1,000 each and will be treated as 0.1% capital and 99.9% interest free loan offering an annual income return of 10.0% per annum.
The minimum holding per Investor is £10,000, with upward multiples of £1,000 and the life of the fund is six years with a two year tail if required.
Income will be distributed to Investors on a quarterly basis