Paxton launches bridging loan fund

Paxton Private Finance has launched a second tranche of fundraising for its bridging loan fund, aiming to raise up to £10m.

The fund – an unregulated collective investment scheme (Ucis) – provides short-term bridging loans secured against UK property.

According to the firm, investors receive a quarterly income distribution and are able to withdraw monies after an initial 12-month period.

Paxton Private Finance partner Nick McLean says: “The Paxton Secured Income fund provides investors with access to an attractive investment opportunity in the UK property market via funding for short-term asset-backed lending.

“We initially soft-launched the fund in April 2011, we feel that now is the time to increase our funding levels by up to £10m to meet proven demand in this specialist sector.”

The fund has a limit of £750,000 per borrower and a maximum low term of six months and a maximum loan-to-value of 75 per cent.

Partner David Kinane adds: “With an increasing number of people looking to use short-term funding in the UK property market, it holds significant potential for investment returns.

“However, these need to be carefully managed and the Paxton Secured Income fund provides investors with the ability to take advantage of these opportunities confident in the knowledge that strict risk management criteria are in place.”