UCIS provider Connaught Asset Management is to reimburse investors in its Income Series 2 this week.
The fund, suspended in April after the collapse of related company Tuita, raised up to £18m in capital from investors.
In a letter send on Monday, clients were informed they would receive about 43.5% of the suspended fund.
"At a meeting of the directors of Connaught Asset Management on 1 October, it was confirmed that an initial capital distribution of approximately 43.5% of the total investor funds is to be paid to investors in the Connaught Income Fund Series 2," a statement from the company said.
Investors will receive their pay-out by Friday.
Connaught chairman Michael de Jersey said the board "was pleased it was now in a position to release some of the investors' capital and that the orderly wind-down of the fund to date had permitted this significant capital redemption".
It is understood Connaught will make further payments to investors before a deadline of April next year, although the precise amount remains unclear.
A spokesperson said Connaught "would prefer not to speculate on the total value to be returned and this will be made more apparent in due course."
"There is [also] a chance [the April deadline] may over-run may overrun and it should not be taken that all monies will be returned by this date and, in fact, no date for the full wind-up and return of the monies has been given."
A larger £118m Series 1 fund was suspended in March. In June, Connaught said investors in the former would suffer a loss of £10m, or 10% of the fund, though at a meeting in August investors were shown illustrations positing a maximum of £53.2m to be recovered, with a worst case scenario of £46.5m.
The company was subject of a Financial Services Authority (FSA) warning shortly before the suspension of Series 1, which said Connaught had misled investors over the risk levels in investing in bridging loans.
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