Walker Crips plans to launch the UK’s first regulated bridging finance fund through its newly created alternative investments division.
The TB Walker Crips Income from Short Term Lending fund will be managed by James Allen, who joined the firm to establish and manage the portfolio, and will open to investors on 1 August 2013.
The fund will provide credit to short-term lending companies that offer residential property bridging finance loans. Risk will be spread through the use of three bridging finance companies.
Income is generated through interest on capital charged on the loans. The fund aims for annual income of 8.4 per cent.
Allen says: “In today’s low interest and growth environment an income of 8.4 per cent 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.”
He adds that the fund could be used a diversifier in the tactical allocation of sophisticated investors and advisers.