Prestige’s ABL strategy bolstered by SWF investment

The UK firm has created a dedicated share class for an unnamed SWF, which has committed $75m to its asset-based lending strategy.

UK-based Prestige Fund Management has tapped an unnamed Middle Eastern sovereign wealth fund for a $75 million committment by creating a dedicated share class.

PFM created a bespoke share class only open to the SWF, which is expected to generate a quarterly coupon between 1 and 2 percent.

PFM is a Cayman-based investment company and manages an asset-based lending strategy focusing on providing debt to UK corporates.

Craig Reeves, founder of PFM, said that the increasing opportunity in the ABL market is attracting Middle Eastern investors unable to find yield through traditional conventional debt instruments.

“Lending strategies are gaining wider acceptance from institutional investors in the Middle East and elsewhere, because they have the potential to provide a consistent yield to larger investors who have long term liabilities,” said PFM founder Chris Reeves.

Established in 2009, PFM is a Cayman-based investment vehicle under the management of Prestige Funds, which has raised more than $1.3 billion in ABL funds in the last decade.

Last month, the firm announced it had raised $100 million in commitments from investors in and outside of the UK for its ABL strategy in the final quarter of 2016.PFM specialises in lending to SMEs operating in agricultural sectors, including alternative energy and biomass projects.