The new fund will support bridging finance for commercial investments located in London and the South of England. It will lend exclusively to entrepreneurial property investors and developers with a proven track record.

The new fund will be seeded with a number of recently completed deals, which will not only give prospective investors more clarity on the types of deals being undertaken, but will substantially mitigate the initial impact of establishment costs.

Dragonfly expects to hold a first close in the fourth quarter of this year with an initial £30 million cornerstone investment. It is initially targeting FUM of £100 million to £200 million.

The fund’s specific focus will be the underlying asset, its vacant possession value and the asset management potential.

In line with this launch Dragonfly has announced the appointment of Ludo Mackenzie as its new Head of Commercial Property.

Ludo has joined Dragonfly to create a multi-fun platform for investment in real estate debt. He was most recently Investment Partner at Melford Capital Partners, where, in 20009, he was instrumental in raising £125 million of equity for its Specialist Situations Fund.

Prior to that, he managed the Henderson UK Property Fund, a top quartile iinvestment fund focusing on real estate throughout the UK.

Ludo Mackenzie, Head of Commercial Property at Dragonfly Property Finance, commented: “We expect investors in the new fund to receive annualised returns on a par with a value-add, direct property fund, but with a superior income yield, greater downside protection and no leverage.”

Jonathan Samuels, CEO of Dragonfly Property Finance, added: “Ludo’s arrival has transformed our ability to take a view on more complex deals and complete them quickly. Property investors like dealing with a lending partner that can value the underlying asset, rather than simply seek a minimum level of interest cover, which effectively precludes those deals with short or no income streams.”