London-based Arch Financial Products has launched a finance fund in a joint venture with cru Investment Management hoping to profit from the opportunities in corporate private finance arising from the current investment climate.

The fund will use exclusive access to private markets via a series of specialist investment companies that will invest in short to medium term private finance via asset-based lending and senior-secured traded debt deals of $3-10 million. The fund will target annual returns of 2 per cent above the Bank of England base rate and an annualised volatility of less than 3 per cent.

The FSA-regulated fund is designed to offer retail investors low risk exposure to private markets. It is domiciled in the UK and is available in sterling with a minimum investment of £1,000 (about $1,500).