Walker Crips is launching what it says is the UK's first regulated bridging finance investment fund for its newly created alternative investments division.
The target launch date for the fund, named TB Walker Crips Income from Short Term Lending fund, is 1 August. It will be managed by James Allen.
It aims to achieve an annual income of 8.4% by providing credit to short-term lending companies that offer residential property bridging finance loans.
The income is generated through interest on capital charged on the loans provided to borrowers seeking short-term funding on UK residential property acquisitions or conversions, and the risk is spread by using three bridging finance companies.
Allen said: "In today's low interest and growth environment, an income of 8.4% is an attractive proposition for investors who continue in their hunt for yield. This fund aims to provide a predictable and sustainable level of income for investors and some much needed capital to property developers."
The fund is a Qualified Investor Scheme and as such as only available to eligible investors, with a minimum initial investment of £20,000.
Walker Crips will absorb all operating costs associated with running the fund and the costs to investors will be charged from earned income and will not exceed 2%.
Sean Lam, group managing director, added: "This new product is very in keeping with the bespoke culture of Walker Crips. In today's volatile market environment, the need to provide returns whil minimising risk is more important than ever."
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