The TB Walker Crips Income from Short Term Lending Fund is the first to be unveiled by the firm’s new alternative investments division.
It aims to create a target annual income of 8.4% by providing credit to short term lending companies that offer residential property bridging finance loans.
The fund uses three bridging finance companies to spread the risk, and generates income through interest on capital charged on the loans. Fund running costs will be charged from earned income and the firm said they will not exceed 2%.
Allen said: “This fund aims to provide a predictable and sustainable level of income for investors and some much needed capital to property developers. By providing the first ever authorised bridging finance investment fund, we are giving potential investors the product they want with additional safeguards. Sophisticated investors and their advisers should view this valuable diversifier as part of their tactical allocation.”
Walker Crips Group reported operating loss of £1m in the year to 31 March.
