Fastest-growing alternative asset class offers 9% cash yield in GBP

Dino Zuccollo

Westbrooke Alternative Asset Management has seen tremendous demand for private debt investments from its South African clients. It has successfully invested over R7 billion across more than 175 private debt transactions across three continents.

Westbrooke Yield Plus, has been available for five years and has raised almost GBP 200 million in this flagship fund. The attraction for high-net-worth investors who are mostly from South Africa has been high yields, low risk and a stable ride amidst market volatility. Investors benefit from superior risk-adjusted returns, reliable income streams, portfolio diversification, diversified sources of income and a tax-efficient investment structure. Yield Plus targets an annual return of cash plus 9% per annum in GBP after fees and costs.

Private debt

Also known as direct lending, private debt is a fixed-income alternative investment that, simply explained, is when a loan is made by a non-bank lender. Non-bank lenders provide private loans for various purposes, such as to bridge property transactions, develop real estate, finance business growth, provide working capital and fund infrastructure. These loans generally have shorter repayment periods.

Dino Zuccollo, head of product development and distribution at Westbrooke Alternative Asset Management explains, “One of the appeals of private debt is that in terms of risk and return - return is generally skewed in the investor's favour, realising higher returns with less risk in addition to capital preservation. Westbrooke has an established track record of local and offshore private debt investing.”

Westbrooke has significant shareholder and management capital investment in the fund with experienced teams based in both South Africa and London.

This open-ended Jersey expert fund has a diversified portfolio of over 50 private debt transactions providing loans to lower and middle-market UK companies and real estate sponsors which is a significantly under-served in the UK. Capital preservation is core to the fund’s investment philosophy, with about 91% of the fund’s loan exposure benefiting from senior-ranking security.

The fund is best suited to investors seeking hard currency returns with low risk appetite who are focused on capital preservation. Minimum investment in Westbrooke Yield Plus is GBP 100 000.