Prestige secures international funds despite Brexit

The small business specialist says global demand for UK private debt remains strong.

Prestige Funds has secured several mandates from global institutional investors for its UK lending funds.

The firm said that, despite Brexit, it is receiving commitments from numerous institutional investors outside the UK.

Investors include two Swiss pensions funds committing a total of $25 million, a South Korean financial group providing $20 million and a Spanish university endowment that invested $5 million.

Institutions investing in Prestige Funds over the past 12 months were predominantly based in Switzerland, the Middle East, Asia and Latin America.

Approximately 60 percent of commitments were institutional investors including sovereign wealth funds, pension funds and family officer, while the remaining 40 percent were from advisory sources such as private banks, independent financial advisors and asset managers.

Craig Reeves, founder of Prestige, said: “Non-UK investors like the plain vanilla yield characteristics of private lending strategies. Part of the attraction is also our focus on areas of the market neglected by traditional private lending institutions, and the diversification of risk across hundreds of individual loans.”

Prestige Funds focuses on lending to UK small businesses through two specialist finance operations in London and Cambridge. It focuses on established small businesses with short or medium-term finance needs across various sectors of the UK economy.