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Peer2Peer Finance News | August 18, 2019

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New SME debt fund launches for retail investors

New SME debt fund launches for retail investors
Suzie Neuwirth

A NEW debt fund has launched aimed at retail investors, offering returns of up to nine per cent per year by lending to small businesses.

IW Capital said on Thursday that the fund will “provide a new and innovative route into investing for retail investors to make use of their capital in a way that works for them, rather than leaving it to stagnate in a savings account.”

There is a minimum investment of £10,000, with target annual returns ranging from seven to nine per cent.

Read more: ThinCats unveils £100m funding programme for UK SMEs

IW Capital is a private investment house offering debt and equity investment opportunities into high-growth small- and medium-sized enterprises.

This is its first retail investor-friendly debt fund. Its clients are typically high net-worth individuals, ultra-high net-worth individuals, family offices, wealth managers and IFAs.

“We are beginning to see a change in the perceptions of investors in the UK, previously the view has been that investing is reserved for the very wealthiest of society but debt funds have opened it up to retail investors,” said IW Capital founder Luke Davis.

Read more: IFISA Guide: SME loans

“These individuals are financially empowered and are looking to use their capital to support British business instead of leaving it in the bank, taking pride in this share of the future-proofing of our economy driving private sector.

“Our offering not only allows businesses to secure funding at rates that would otherwise be unavailable from most traditional banks or lenders, but also gives investors the opportunity to make the most of their capital in a time of historically low interest rates.”

Read more: SMEs look to alternative funders in case of no-deal Brexit