This review of P1 Capital will give certain particulars for the invest opportunities from the firm, specifically its two-tranche fixed income bond offering.
P1 Capital is an asset management company with a focus on UK residential property development. Rolled out in 2017, the firm now oversees roughly 65 million British pounds worth of investor assets that come from high-net-worth individuals, institutional investors, and reinvested earnings.
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P1 Capital Fixed Income Bond Investment Options
The company offers a two-series bond offering that promises investors fixed income payouts.
The investment targets to raise up to 5 million British pounds.
Together with corporate or personal guarantees, the money is given to well-known real estate developers in return for a second-charge mortgage on an underlying asset. Repayment of the loan is conditional upon the property’s eventual sale or refinance.
Fixed Rate Secured Income Bond Series A
This opportunity has a two-year minimum term and a three-month notice period before it may be redeemed. Only sophisticated and investors with high net worth have access to it.
The investment type is an unlisted corporate bond with a quarterly payment at a fixed interest rate of 9% yearly.
Investors can subscribe for the product for at least 10,000 pounds.
A debenture over the issuer’s assets, mainly its loan book, serves as security for the bond. It consists of loans secured against commercial and real estate in the UK.
The earliest repayment date is two years from the investment date, with a three-month notice required for any intention to withdraw funds.
The bond is issued by P1 Capital arm P1CP Int-Inc Limited, an Isle of Man business that offers short-term loans backed by commercial assets and/or real estate in the UK.
Fixed Rate Secured Income Bond Series B
The investment opportunity has a minimum term of two years, with bondholders required to provide three months’ notice for redemption.
Like Series A, this option is exclusively available to high net worth and sophisticated investors.
The minimum subscription amount is also 10,000 pounds, but the bond offers a fixed interest rate of 10% per annum, distributed annually.
Pros and cons of P1 Capital Loan Notes
The market for commercial assets and the continuous housing shortage in the UK offer bondholders a good prospect.
However, it is important for investors to understand that this investment entails risks typical of unlisted securities, such as credit risk associated with the underlying loans and liquidity risk.
The bond is also not covered by the Financial Services Compensation Scheme.
Ultimately, investing in loan notes always carries big risks, and you could lose all your money. Caution and seeking advice are recommended.
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