Since identifying a huge demand for short-term loans, a niche bridging and development lender has just announced the launch of its own Guernsey-based equity fund, ‘Greenfield Securities Bridging Fund PC’, which is due to go live on 16th March.

The fund, which currently has a £10 million target, is to finance loans written by principal bridging lender Greenfield Capital, providing an additional funding line to the lender’s existing group of high net worth (HNW) private investors. 

The £10 million target has been raised in three tranches in order to blend the fund with Greenfield Capital’s existing resources, and the third tranche is expected to close in four to five months’ time. 

With a minimum investment of £50,000 and an indicative net return of ten per cent per annum over an investment term of five years, investors can expect to receive a dividend payment of seven per cent per annum.  

The fund will be used to finance short-term loans secured against legal charges on properties, from one to 18 months, with a maximum LTV of 75 per cent on residential property and 65 per cent on commercial property. 

David Grant, Operations Director at Greenfield Capital Ltd, spoke exclusively to B&C about the launch, explaining that the lender is now in a position to grow fast with a sustainable and committed fund. 

He also commented on the recent apprehensions that other bridging funders, namely Connaught and Clydesdale, have displayed towards the market. He said: “Our fund presents the opportunity for HNW individuals to diversify their investment portfolios. There is an obvious benefit if other funds exit the market, but this is not part of our original strategy.”

David also added that the Greenfield Securities Bridging Fund PC is unlikely to be the last of its kind, with Greenfield currently planning to launch other investment opportunities in the near future. 

Further commenting on the announcement, Greenfield Capital's Managing Director, John Yates said: "This is an exciting period as we're already lending circa £3 million per month – the fund will enable us to scale up further to support our client demand.”