Alternatives Firm Markets Bond To Retail, HNW Investors

Oct 19 2009 | 12:31pm ET

Alternative investment management firm Future Capital Partners has just begun marketing a 9% yielding bond to UK and international retail and high-net-worth investors.

The Aramid Bond is a convertible redeemable bond which has been issued by the Aramid Entertainment Fund. The bond offers investors a 9% net return on their invested capital which will be paid quarterly in arrears.

The bond issue will be limited to 15% of the fund’s net asset value, which equates to a current offering to investors of £15 million. The minimum investment is £47,000 or €50,000, and bondholders will rank above other shareholders of the fund in all respects.

The Aramid Entertainment Fund, which has AUM of US$277, has returned over 40% since its launch in September 2006, with no negative months. In the last 12 months the fund has returned over 8%.

The bond is also expected to be listed on the Cayman Islands Stock Exchange, thus opening the investment opportunity to a wider arena of investors in a tax efficient manner.

“Investors are increasingly demanding products that offer a cash-plus return in a low risk environment,” said Tim Levy, CEO of Future Capital Partners and a director of the Aramid Entertainment Fund. “We believe the Aramid Entertainment Bond does both and is an exciting and risk-averse offering. The fund commits to retaining a cash balance equal to two coupon payments, so the chances of bondholders not earning their expected return are slim.

The Aramid Entertainment Fund focuses on the global media and entertainment industry and provides low to medium term debt finance to producers and distributors of film, television and other media and entertainment - secured against a variety of assets. Typical transactions include discounting film tax credits, pre-production bridge financing, lending against pre-sales distribution contracts and providing secured loans on unsold distribution rights.

Aramid Capital Partners, which provides services to the fund, and which is jointly owned by the Future Capital Partners group of companies, comprises leading global entertainment financiers who between them have completed in excess of US$15 billion of structured entertainment financing since 2002.

The Aramid Entertainment Fund is currently invested in over 40 loans secured against a wide variety of assets, with the loan book being valued on a quarterly basis by Grant Thornton.

Future Capital Partners has £6 billion in assets under management and specializes in providing risk managed alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm’s products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.


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