Prestige sees rise in direct lending commitments

Cayman-based loans provider Prestige Fund Management (PFM) said it has sourced $100 million in investor commitments in the final quarter of 2016, showing the increasing demand for asset-backed direct lending to small and medium-sized businesses in the UK.

PFM said that the new commitments have mainly come from outside the UK, from Middle East sovereign wealth funds and pension groups, and from Swiss foundations and corporate pension funds. PFM added that its focus is loans to small business in agriculture-related sectors, including alternative energy and biomass projects. PFM founder, Craig Reeve, said: “Despite Brexit, institutional interest in UK lending strategies is higher than ever. The world is facing the prospect of increasing interest rates, more market volatility and future political uncertainty. In this environment, institutional investors must still grapple with falling corporate and sovereign bond yields. I believe the UK will continue to be a top five destination for foreign direct investment.”

PFM was launched in 2007 and has since raised over $1.3 billion for its lending strategies. It has provided financing for a wide range of projects within the UK’s rural economy.