Amberside Capital and CH1 Investment Partners are pleased to announce the launch of a crowd bond lending platform, Amberside ALP (www.ambersidealp.com).
This platform is designed for direct investors as well as being available through financial advisors and execution-only intermediaries.
Investments can be held direct or within an ISA, offering tax-free returns.
Amberside ALP have a pipeline of loans currently being evaluated in UK-based infrastructure projects including solar farms, effluent treatment facilities, hydroponics project and grid support infrastructure.
Amberside ALP is designed to give access to debt investments which are normally in the territory of the private banks, lending into asset-backed infrastructure schemes typically requiring up to £20m in debt.
Investors will be able to choose between a 4 year bond, 2 year bond or a bond with 1 month’s notice. All debt investments will be pooled so that risk will be spread over a number of different infrastructure assets.
The management team of Amberside ALP carry a wealth of experience from the institutional market, and they aim to bring the rigour of institutional investment to the retail market.
Lending opportunities for Amberside ALP are carefully selected to protect bondholders’ investment. Covenants including minimum debt service cover ratios or loan-to-value tests will be enforced, ensuring that borrowers are expected to comfortably repay their loan or that the value of their assets will cover the debt in the event of default.
For example, the first loan has been agreed at a 1.5x cover ratio, meaning that for every £1 debt payment due from the borrower they are forecast to generate at least £1.50 to service that debt, leaving 50% headroom in case of underperformance.
Proceeds of the bond issue will only be used to make loans to borrower companies, all the initial operating costs of Amberside ALP are covered by investment from the management team. Amberside ALP will only use cash received from capital repayments on its loans to either fund further loans or to repay bondholders. These measures ensure that bondholders’ investment cannot be used to pay fees to the management team and so aligns their interests with the bondholders’.
As additional protection for bondholders, Amberside ALP will use 65% of the interest income generated from loans to pay interest to bondholders and build up a liquidity buffer. Cash will only be released to shareholders from this fund once an amount equal to 50% of the value of outstanding 1 month’s notice bonds and 5% of all other bonds is held in cash.
The level of diversity for the early investors will be limited, so to recognise this generous early bird incentives of up to 1.75% are being offered.
Although the early bird could be available until 30 June 2018, we expect this offer to be extremely popular given the type of investments available, so the early bird may be withdrawn at reasonably short notice
The target is to raise £100m in the first 18 months from launch.
David Scrivens, director of Amberside Capital Ltd stated “we are pleased to be able to give this opportunity for retail investors to gain access to bond investments normally only available to larger institutions. The fact that we can offer this within the tax efficient wrapper of an ISA is the icing on the cake”
Richard Spacey, director of CH1 Investment Partners LLP “we have been involved in raising debt finance directly with high net worth individuals through complex Limited Partnership structures, this company allows a wider group to gain access to a high quality product in a simple easy to use manner”
About Amberside Capital Ltd
Amberside Capital sources, structures and evaluates investment opportunities to suit the requirements of our investment partners. The organisation builds on the experience of its founders in the infrastructure and renewable energy sectors. Our investment strategies include developing platforms to deliver pipelines of attractive investment opportunities. Drawing on the relationships our team have built with vendors, we offer UK institutional investors more direct access to larger assets away from the competitive environment.
Amberside Capital also brings the rigour and best practice of institutional fund management to retail investors offering tax-efficient equity investments and asset-backed debt investments.
For more information, visit www.amberside.com
About CH1 Investment Partners LLP
CH1 Investment Partners LLP ("CH1") provides bespoke investment solutions to High Net Worth, Professional and Sophisticated Investors. They source, shape and undertake due diligence on investments in Unquoted companies. Through their strong network of developers and advisors they seek to provide access to off-market transactions.
They provide ongoing oversight and management assistance where required to ensure the best possible continued performance for Investors.
The CH1 team has raised in excess of £400m for investment opportunities to date and have over 30 years of combined experience in the non-standard investment sector.
For more information, visit www.ch-1.co.uk
Contact: David Scrivens, director Amberside Capital Ltd, 01442 910 064, firstname.lastname@example.org