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Future Capital Offers Low Risk Bond
Will Robins
20 October 2009
Future Capital Partners, the UK-based alternative investment boutique, has launched a new convertible bond aimed at high net worth investors. The Aramid Bond will be open to UK and international investors with a minimum investment of £47,000 ($77,000). It will come with a return of nine per cent, to be paid in quarterly instalments, the firm said in a statement. The bond will be issued by the Aramid Entertainment Fund which has assets under management of $277 million and provides debt finance to producers and distributors of film. “Investors are increasingly demanding products that offer a cash-plus return in a low risk environment…By limiting the bond issue to 15 per cent of the net asset value of the fund, we are further enhancing the risk profile of the investment,” said
According to Mr Levy, the bond is being marketed as a suitable product for risk-averse investors, with the fund using a wide range of credit positions and financial institutions to secure its credit book. It is expected that the Aramid Bond will be listed on the Cayman Islands Stock Exchange.