RAW Capital Partners manages the RAW Mortgage Fund, a unique UK-focused residential mortgage fund that has a 9-year track-record in the market.
The RAW Mortgage Fund provides secured, high-yield loans for UK Buy-To-Let (BTL) properties. The BTL mortgages are primarily delivered to non-UK residents, expats, corporates and trusts.
The RAW Mortgage Fund has consistently out-performed (achieving a 3%+ premium over the Bank of England base rate). It has generated a net return over the last 12 months of 8.46%* to investors at an average Loan to Value (LTV) of 46%, with Assets under Management (AuM) of £185m. The fund also has multiple redemption options for investors to provide liquidity as necessary.
If you have an appetite for real estate backed debt and the high risk adjusted returns of this established strategy, this is why you should consider investing in the RAW Mortgage Fund:
- Tailored to an under-served market: We provide financing for a largely under-served market; non-UK residents, expats, corporates and trusts looking for mortgages for UK-based BTL residential properties. These group are not typically served by mainstream lenders, despite their low risk, high quality asset security and strong borrower profiles.
- Robust BTL demand: Rental growth in the UK remains strong (at 6.6% in the last year, according to Zoopla) which sustained BTL purchases from investors despite the high-interest rate environment.
- Growth market: In Q1 2024, the FCA estimated that the mortgage market for UK BTL is £17.4bn; the maximum capacity of the fund is £1bn and the AuM has grown on this course over the last 9 years; AuM growth reached 31% in the last 12 months and has averaged 20% pa over the last 3 years.
- High quality assets: RAW typically only provides mortgages to UK and Channel Island rental properties, with the majority being quality new build apartments:
- 56% - Greater London (44% in the rest of the UK and Channel Islands)
- 66% - properties less than £500k in value
- 86% - apartments
- Diverse exposure: The funding strategy is to have a diversified pool of borrowers and properties, and control exposure with concentration limits (e.g. max LTV 55%, 5% to a single borrower, and 10% against related properties). There are currently 668 loans in the portfolio (£167m in value, average loan is £249k).
- High risk-adjusted returns: In 2023, the fund generated an annual net cash yield of 8.55% for its investors. We have a broad range of investors, including HNWIs, family offices and institutional investors; some of our largest investors are insurance companies (largest holds 25% of the fund) who are attracted by the capital efficiency for them (as per Solvency II requirements).
- Security and consistency: The RAW Mortgage Fund provides attractive and consistent returns, a high level of capital security, low risk lending and a low correlation with other asset classes.
- Transparent and liquid: There are no performance fees, and ongoing charges range from 0.99% pa to 2.3% dependent on investment level and dealing period preferences (monthly, quarterly and semi-annually).
- No losses: Over the 9-year lifetime of the fund, we have experienced no bad debt. Poor performing loans (including capital, interest and fees) have been recovered in full.
- Extensive experience and governance: RAW Capital Partners is an established, specialist asset manager. We were set up over 12-years ago in Guernsey, with offices in London and Southampton. The firm has 41 staff members across its offices and a robust infrastructure in place for operations and risk management; in addition to the boards at both manager and fund levels with independent non-executive directors, there are credit, investment and risk & compliance committees.
- Regulated: RAW Capital Partners Limited is licensed and regulated by the Guernsey Financial Services Commission, with RBC as the custodian bank, Vistra as the fund administrator and Grant Thornton as the auditor.
- ESG: RAW’s environmental objectives include measuring and minimising the environmental impact of the firm and the assets it manages; as the fund predominantly lends against new build apartments, the energy performance is typically high and environmental impact is low.