Investors take over from banks with asset-backed loan drive

Tim Wallace
Follow Tim
INVESTMENT managers hope to take advantage of falling bank lending to UK firms, with Shore Capital launching Puma Heritage yesterday to capitalise on firms’ thirst for funds.

The business intends to raise £100m to lend to firms, secured against assets like real estate.

Aiming to beat inflation as a bare minimum, the firm hopes to entice older investors with a scheme designed to minimise inheritance tax bills.

The group hopes that the business will qualify for business property relief (BPR) meaning the value of any investment will fall outside of the owner’s estate for inheritance tax purposes, as long as they have held the stake for more than two years.

Chief executive David Kaye hopes that will tempt investors as it is a much shorter period than the seven-year limit on gifts to inheritors, and allows the investor to retain control of their money.

The group has previously used venture capital trusts to offer asset-backed loans, but those are restricted to small firms. This new setup is aimed at established media firms as well.