The director and founder of London-based investment manager Prestige Asset Management said the firm’s UK agricultural finance portfolio, the Prestige Alternative Finance fund, is low volatility and has attracted more than £185m in investment since its launch in 2009.
The portfolio will provide asset-based direct lending to the UK agricultural sector, with Prestige offering more than 2000 loans and finance agreements to more than 750 clients since 2009.
Prestige aims to give investors an absolute return that outperforms traditional equity and fixed-income investments and is currently offering returns of 6.5 per cent.
Mr Reeves said: “Banks are still not lending as much now as they have done to small and medium-sized businesses. We have stepped into this space to offer a back-to-basics lending alternative.
“With the returns, tangibility and low volatility, I believe this type of investment will eventually become an asset class in its own right. We have had more than 3000 individual investments in the fund through 200 IFAs so far.”
Peter Davies, founder of South Glamorgan-based advisory firm Create Wealth, said: “From a company perspective, as it’s an alternative and unregulated investment we would prefer to access something like this through a multi-manager fund.”
£185m: AUM in Prestige Alternative Finance