The Private Lending AMC pools investments to grant loans up to 3 years to wealthy private individuals or private investment companies (in case a personal guarantee is embedded) that have a net wealth of more than CHF 15 million and are domiciled in Western Europe. When granting loans, the AMC relies on personal recourse and therefore on the size and quality of personal balance sheets rather than specifically pledged assets.
Earning high and variable yields with a well diversified loan portfolio linked to a low correlation to the stock market is what makes this product so attractive. We believe this AMCs’ offers a very attractive risk return profile. It grants loans to borrowers in Western Europe who have a net wealth of at least CHF 15 million which limits the risks. On the other hand it earns a premium for being able to offer tailor made loans and great time-to-market. A team of experts is structuring the loans, mitigating the risks and managing the portfolio while handing the structuring fee to the investor.
With this AMC's risk appetite, a single loan would be structured according to the following characteristics:
•Loan amount on average is typically between CHF 3-5 million
•Loan amount is a maximum 20% of the borrowers net wealth
•Loan granted with personal recourse
•The borrower can use the loan amount without any restrictions
•Fixed loan durations between 12 and 36 months
•Balance sheet monitoring
•Defined exit path