Future Capital Partners (“FCP”), the £6 billion alternative investment boutique, has announced it is to market a 9% yielding bond to UK and international high net worth investors.
The Aramid Bond (“Bond”) is a convertible redeemable bond which has been issued by the high-performing Aramid Entertainment Fund.
The Bond offers investors a 9% net return on their invested capital which will be paid quarterly in arrears.
The bond issue will be limited to 15% of the fund’s net asset value, which equates to a current offering to investors of £15 million. The minimum investment is £47,000 or €50,000, and Bondholders will rank above other shareholders of the fund in all respects.
The Aramid Entertainment Fund, which has AUM of US$277, has returned over 40% since its launch in September 2006, with no negative months. In the last 12 months the fund has returned over 8%.
The Bond is also expected to be listed on the Cayman Islands Stock Exchange – a recognised Stock Exchange for most SIPP and SASS providers – thus opening the investment opportunity to a wider arena of investors in a tax efficient manner.
Tim Levy, CEO of Future Capital Partners and a Director of the Aramid Entertainment Fund, said:
“Investors are increasingly demanding products that offer a cash-plus return in a low risk environment. We believe the Aramid Entertainment Bond does both and is an exciting and risk-averse offering. The Fund commits to retaining a cash balance equal to two coupon payments, so the chances of bondholders not earning their expected return are slim.
Levy continued: “By limiting the bond issue to 15% of the net asset value of the fund, we are further enhancing the risk profile of the investment. In fact, the fund’s loan book is secured against hundreds of credit positions with a wide variety of financial institutions, all of which would need to fail for bondholders’ capital to be at risk.”
The Aramid Entertainment Fund focuses on the global media and entertainment industry and provides low to medium term debt finance to producers and distributors of film, television and other media and entertainment - secured against a variety of assets. Typical transactions include discounting film tax credits, pre-production bridge financing, lending against pre-sales distribution contracts and providing secured loans on unsold distribution rights.
Aramid Capital Partners LLP, which provides services to the Fund, and which is jointly owned by the Future Capital Partners group of companies, comprises leading global entertainment financiers who between them have completed in excess of US$15 billion of structured entertainment financing since 2002.
The Aramid Entertainment Fund is currently invested in over 40 loans secured against a wide variety of assets, with the loan book being valued on a quarterly basis by Grant Thornton.
Future Capital Partners specialises in providing risk managed alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm’s products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
-ENDS -
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