By Daniel Lanyon on Wednesday 21 November 2018
The new portfolio is aimed at investing in loans in the agricultural industry in the UK and Ireland.
Prestige Funds is planning to launch a new direct lending fund focusing on agricultural and SME businesses in both the United Kingdom and the Republic of Ireland.
The new portfolio, named Prime Alternative Finance (PRIME), will launch in November to external investors as a Luxembourg based, SICAV SIF operating with monthly liquidity and managed by Prestige Capital Management in Malta. It will be targeting returns of 5-7 per cent per annum and has no performance fee.
It is Prestige’s first fund to invest in the Republic of Ireland as well as the United Kingdom. Prestige’s existing direct lending funds have focused entirely on the UK to date but several team members were previously employed by Allied Irish Bank.
The fund will provide agricultural / SME loan finance for ‘on farm energy’ related projects as well as asset finance related opportunities.
The firm estimates £300-400m of potential deal flow opportunities over the next several years.
Craig Reeves, Founder of Prestige, said: “The critical farming sector in the British Isles is an important market for secured lending, with private debt replacing commercial bank lending in many areas of the agricultural economy."
“On Farm Energy is also playing a key role in helping farms to adjust to higher energy costs, reduce waste and generate alternative income while also indirectly supporting governments in the achievement of their future clean energy objectives.”