Omni Partners, the alternative investment specialist set up by trading veteran Steve Clark in 2004, has received external capital into the Omni Secured Lending Fund I.
Seeded with internal money initially, this marks the first external money to be allocated to the fund, demonstrating the attractive nature of the sector and the fund to investors.
The external money was committed for 1 May and came from a Swiss-based family office.
Clark says: “This investment shows that the strategy and the structure of the fund we have is an attractive one for investors, and we fully expect more funding to come in as the success of the fund continues. We have a healthy pipeline of new investors intending to allocate to the fund, with a further USD20m expected in the coming month. The key characteristics of this strategy are superior asset quality, short tenor and high yield and CBFL’s track record of delivering returns over the last four years. It is these factors that have been attracting investors to this exciting new strategy.”
The fund‘s investment proposition is to take advantage of the vacuum created by banks withdrawing from short-term property lending in the UK, in order to deliver attractive risk adjusted returns. The fund focuses on the short end of the lending market whereby lenders are able to obtain an interest rate premium and demand more security in return for issuing lending decisions quickly. Addressing investor demand, the fund has been structured with a relatively short duration compared with other direct lending products. Investor funds are used to finance loans with a maximum duration of 18 months secured against both residential and commercial properties in the UK. Strict lending requirements are enforced, including a maximum loan-to-value (LTV) of 70 per cent.
Since inception in February this year, the fund has completed 16 loans, at an annual gross yield of 16.6 per cent. With this new investment the strategy AUM stands at over USD105 million.