Growth in range and diversity of private debt market has created opportunities for multi-strategy diversification.
LONDON: 15th February 2019: Prestige Funds, a leading specialist in the management and distribution of direct lending funds, has launched a new multi-manager investment fund that will specialise in allocating to both UK and international private debt and high yield credit managers.
‘Multi Finance Opportunities Fund’ was recently launched and is managed by Prestige Capital Management, a Malta based MFSA-regulated Alternative Investment Fund Manager (AIFM). Prestige has over 10 years operating experience in Fund based direct lending and fund of fund investing. Multi Finance Opportunities will target returns of 5% - 7% p.a. and will provide investors with access to absolute returns derived from a number of different lending and alternative credit based, investment strategies managed by specialists in the sector who can demonstrate strong track records.
Among the possible sector strategies Multi Finance Opportunities will be allocating to include Trade Finance, Invoice Finance, Real Estate Bridge Finance, Market Place Lending and High Yield Credit. Multi Finance Opportunities has the mandate to invest within alternative debt strategies across the globe. The current model investment portfolio consists of allocations to 6 core pillar strategies consisting of approximately 17 individual credit funds which, between them, currently have USD 4 billion in assets under management, 500 employees and 17,000 individual portfolio loan / positions.
Multi Finance Opportunities draws upon the considerable expertise that Prestige has accumulated in these sectors over the past decade, including the in-depth knowledge of its team of finance, banking and alternative investment professionals. A strategic and tactical asset allocation process is being employed to select appropriate managers and sectors for Multi Finance Opportunities. Underlying investments will be constantly monitored for performance, volatility and drifts in intrinsic risk and changes within management.
Craig Reeves, Founder of Prestige Funds, commented: “Multi Finance Opportunities is designed to provide investors with a genuine alternative inflation hedge in an increasingly uncertain and volatile world. The universe of private debt managers has now reached a point of maturity that will enable an effective multi-manager approach to this sector, with a growing universe of specialists managing diverse strategies in different countries.”
Reeves added: “We have recruited to Prestige over the years a team that brings additional and essential risk management oversight to the process of selecting and monitoring managers. Our understanding of this sector places us in an excellent position to select the opportunities in this market and to build a diversified investment portfolio of private debt funds.”
According to research carried out by PwC and Lendity, alternative lending has the potential to produce solid returns at a fraction of the volatility of other asset classes. Using the Orchard US Consumer Online Lending index as a proxy they illustrated that, between 2011 and 2017, alternative lending was able to achieve a superior annual return to 10-year US Treasury notes and investment grade corporate bonds.
In addition, according to the same research, the adjusted risk return of direct lending is superior to high yield bonds, both in terms of the magnitude of return dispersion/volatility and correlation with main asset classes.
Multi Finance Opportunities is an open-ended SICAV with both advisory and institutional share classes. It is available in USD, GBP, EUR, CHF and SEK share classes. There is a 1.5% management fee and no performance fee.
FOR FURTHER INFORMATION
Hawksmoor Partners, London
T: +44 (0) 7793 882 230
Founded in 2007, Prestige consists of several companies under common ownership and control. The objective of this enterprise is to provide professional, innovative financial products and services to a diverse international client base and to deliver consistent, positive investment returns.
Prestige is also committed to continuously improving all areas of its business while empowering and developing its diverse team of professionals - many of whom come from senior positions within banking, finance and investment management.
The key strengths of Prestige are People, Processes and Systems
Prestige was established just months before the largest ever global financial crisis which continues to significantly shape many aspects of our world today in economic, political and social terms.
Since then, and against many odds, Prestige has successfully launched several businesses and innovative financial products and services that now include a team of over 100 professionals in the UK and several international financial centres as well as raising over USD 1.8 billion. It is testament to the hard work of its various teams, the systems and processes used, and the products and services created that the Prestige business continues to grow and evolve.
Established in 2007, Prestige Asset Management Limited (PAML) is a UK-based administration and marketing company authorised and regulated by the Financial Conduct Authority (FCA) (No: 486239) and is a member of the Alternative Investment Management Association (AIMA) and the Chartered Institute for Securities and Investment (CISI). PAML is entirely privately owned by its senior management. The company specialises in providing investment administration and marketing support services to international fund managers, wealth managers, asset managers, financial advisors and financial intermediaries.
Established in 2011, Prestige Capital Management Limited is a Malta-based investment management company regulated by the Malta Financial Services Authority (MFSA) and is entirely privately owned by its senior management. The company specialises in international alternative investments with a focus on absolute return, actively managed strategies and is responsible for the management and operation of several European-domiciled investment funds. Prestige Capital Management Limited is authorised and regulated by the Malta Financial Services Authority (MFSA) and is a member of the Malta Funds Industry Association (MFIA). Prestige Capital Limited is a full scope AIFM and is authorised as such in accordance with the Alternative Investment Fund Managers Directive (AIFMD).
Established in 2009, Prestige Fund Management Limited is a Cayman based Fund Management company registered with the Cayman Islands Monetary Authority (CIMA) and is entirely privately owned by its senior management. The company specialises in international alternative investments with a focus on absolute return, actively managed strategies and is responsible for the management and operation of several investment funds. Prestige Fund Management Limited is registered with the Cayman Islands Monetary Authority (CIMA).
Press release distributed by PressHalo on behalf of Prestige Asset Management, on 15th February, 2019.