Private debt investment specialist Prestige Funds has launched the Premium Alziraea Fund, a Shariah-compliant real assets and project financing fund targeted at the renewables and agriculture sector in the UK.
The Cayman Islands-domiciled fund will invest in a diversified portfolio of secured asset and project-based finance projects many of which may be or are backed by the UK Government.
Investment will cover a broad portfolio of projects and small businesses with a focus on UK agricultural, horticultural and rural small businesses which have historically operated with lower defaults than other sectors.
The Premium Alziraea Fund will target capital appreciation of 5-7%pa (net) with target annualised volatility of 1% and will operates without using leverage or performance fees.
It will operate as an open-ended vehicle although there will be a one year lock up and monthly liquidity on 90-180 days.
Aiming to raise $50-75m in year one, it will be aimed at Islamic institutional investors looking to diversify their investment portfolios and will be available in accumulation and distribution share classes in GBP / USD / EUR currencies.
Craig Reeves, founder of the Prestige group, said: "Premium Alziraea is our first Islamic - Impact financing product and is targeting an exceptionally important part of the UK economy at a critical time in its ongoing development."
He added: "Our portfolios often finance landowners who are taking food, farm and animal waste and turning it into bio-gas and electricity, projects in turn supported by the UK government."
Based in Cambridge, England, Privilege said it drawed on a team of almost 60 people with extensive commercial banking backgrounds and represented a considerable centre of expertise for agricultural / renewable energy and waste to energy financing.
The Fund's Shariah adviser is Sheikh Mohamed Ali Elgari, former professor of Islamic economics and a former director of the Center for Research in Islamic Economics at King Abdulaziz University, Jeddah, Saudi Arabia.
Prestige has retained Dubai based, Kroma Capital Partners as its Middle East distribution partner.
