Hedge Fund Firm Omni Partners to Shed British Property Lending Fund
Omni Partners, a hedge fund firm focused on consistent absolute returns, is launching its first property lending fund, aiming shorter-term UK loans, as the asset class becomes increasingly popular among institutional investors.
The fund will focus on commercial and residential property loans with a loan-to-value ratio of up to 70% and a maximum duration of 18 months, the firm said Monday.
That duration is shorter than other funds in the market, which typically take five to 10-year views. Omni's fund will lend at rates ranging from 8% to 24%.
The new fund comes three months after Omni made Capital Bridging Finance – an origination platform seeded by founder Steve Clark – a subsidiary.
A spokesman for the firm said in an emailed statement that the fund would focus on high yielding, shorter term loans to give clients “the benefit of the inverted yield curve in assets. Clients will receive a higher return for less duration risk.”
He added: “The majority of the market are trying to raise money for lower yielding, longer tenor assets with either no track record of originating assets outside of a large lending institution.”Source: Financial News