Mayfair-based IW Capital expands its SME lending proposition with the close of the first round of financing for its debt fund
IW Capital - the debt, equity and EIS investment specialist based in the heart of Mayfair - has announced the first close of its first secured debt fund (the "Fund"). The £4.5m fund will catalyse £100m in growth-finance to the UK’s SME arena over 2018/19.
The Fund is being used to provide more than £1 million to three different SMEs, with portfolio diversification increasing over time. The invested funds are being used to support acquisition financing and working capital needs for businesses in the construction services, printing, and financial services sectors.
IW Capital has served the growing arm of the UK private sector for the best part of the last decade, and this first Fund, which will raise £4.5 million over its lifetime, will primarily target the high net-worth and family office market. Additionally, it will also be positioned to attract investment from the wider IFA and retail investment arena. The Fund will close in May 2022, with the run-off commencing 12-months earlier. It will aim to pay investors a minimum return of 7.0% per annum and if returns have exceeded this level at the end of the Fund's life, then any income or capital gains in excess of this target will be returned to investors and IW Capital on a 50:50 basis.
Presenting a sector agnostic approach, investors' funds will be allocated across a diverse portfolio of loans supporting profitable and established businesses. All lending is secured by a mortgage debenture over the borrower's assets, and any wider security needs will be met based upon a case-by-case appraisal. Consistent with IW Capital's robust approach to loan structuring, all lots include financial covenants and reporting obligations on the part of the borrower.
Luke Davis, CEO and founder of IW Capital said, "IW Capital has championed more diverse funding options for SMEs in the industry over the course of the last decade - first through equity and EIS, then with the launch of our debt arm and now with the first raise of this new secured fund. This announcement demonstrates the investor confidence in the UK's buoyant SME economy, and shows its resilience and rapid growth potential, despite some reservations surrounding Brexit."
Non-executive director positions can be an ideal way for experienced individuals to gain board positions, lead by example, and take growing businesses to the next level. With the announcement of the Fund, non-executive roles will be needed to help SMEs grow and fulfil their potential. IW Capital is keen to connect with budding non-executive directors and discover what they can bring to the UK's most exciting SMEs.
If you think that you would be an ideal candidate for a non-executive director role, or would be interested in investment opportunities, please contact IW Capital on 0207 015 2250.