Connaught behind £130m of funding into short-term market
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Connaught Asset Management has revealed two of its income funds are responsible for £130m of funding into the short-term lending market.
The Connaught Income Funds Series 1 and 2 are both Unregulated Collective Investment Schemes and lend funds through its specialist partner, Tiuta plc, the short-term and bridging lender.
Funds within Series 1 finance bridging loans with a target LTV of 75%, while funds within Series 2 finance short and medium-term secured lending with a target LTV of 65%. The current average LTVs in all income funds is below 60%.
Series 2 is an offshore version of Series 1 and it is an authorised Unit Trust regulated by the Guernsey Financial Services Commission.
Since the launch of the Series 1 income fund in July 2008, Connaught have funded over 550 loans to the sector.
Alistair Mawdsley, director of Connaught, says: “Connaught now has two bridging loan funds for which Tiuta is the specialist partner. These funds currently add £130m to the lending market at a time when funding from more traditional lines continues to be restricted.
“The Series 1 and 2 income funds are complimentary; Series 1 focused on onshore investment with Series 2 being specifically designed for the offshore bond, QROPS and non UK-markets. In a market where positive growth and good income are both difficult to find, funds that achieve both are in short supply but this is exactly what the distribution or reinvested options for our income funds offer.”
Steven Nicholas, chief executive of Tiuta plc, says there continues to be strong and ongoing demand for short-term and bridging loans as many other finance avenues are closed to borrowers.
He says: “As experienced lenders in this sector we can ensure the money is used correctly and that it is offered to the highest quality cases in the market. We will continue to work closely with Connaught to ensure we can support all those borrowers who are seeking short-term and bridging loans, and we envisage a very successful end to 2011 and a strong opening to 2012.”
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Readers' comments (1)
Anonymous | 6 Dec 2011 5:27 pm
What is the actual investment figure in the funds?
Approx 13/14 loans a month at roughly £3m a month total? Given Tiuta's press coverage of their lending performance they must be doing quite a bit with their other panel lenders then.
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