Get an attractive yield by lending to established growing companies
Our investors provided loan funding to Great British Botanical, a manufacturer of premium greenhouses.
WHY LEND TO PRIVATE COMPANIES?
Lending offers a lower-risk route to private companies with the benefit of a fixed exit date. Our programme of lending offers attractive yields of 8% to 10% per annum. Some loans offer the opportunity to benefit from growth in the value of the borrower’s business, with the potential to pay out a bonus of around 40% of the loan amount.
If you have money on deposit, cash in a SIPP or in Cash ISAs, you can use this to build a diverse portfolio of loans with a target return of 12% to 15% per annum. Lending to private companies puts capital at risk and is an illiquid investment, whereas cash deposits do not usually place a customer’s capital at risk.
Rockpool’s specialist team source prime lending opportunities from well-managed private companies requiring £2m to £10m of loan finance. Borrowers are required to show annual profits of at least two times their interest outgoings and have a strong capital base or be able to provide significant alternative security.
Routes to lending
Loans can be made through the Rockpool Innovative Finance ISA and the Rockpool SIPP. Lending to private companies also offers company owners a simple, low-cost route to inheritance tax mitigation.
Lending to private companies may not be suitable for you and your capital will be at risk. This sort of investment does not provide a reliable source of income and you may not be able realise your capital when you wish to. The tax benefits of investing in private companies depend on your personal circumstances, on the circumstances of each company and on rules and regulations. All of these could change, removing tax benefits you expected to enjoy.
A strong security structure, including a full debenture, must be in place before we lend to any borrower.
Loans pay 8% to 10% interest p.a. and most loans come with a share in any growth.
Build a diverse loan portfolio using our AutoSelect or SelfSelect service.
A transformer in action
NCE maintains mission-critical IT servers and data storage systems. Rockpool investors lent £4.6 million at an interest rate of 8% with a 5-year term. Security was in the form of debentures over all assets of the group.
The loan was repaid after two years and lenders benefited from equity share options giving a total return of £1.43 per £1 invested.
REGISTER WITH ROCKPOOL
Join our growing network of investors who enjoy the benefits of investing in private companies with the support of a professional.
Detailed information on private company investments opportunities and services.
Access established, profitable private companies and invest in growth equity (with tax reliefs) and high yield loans.
Tax-efficient ways to invest, such as the Rockpool SIPP and the Rockpool IFISA.
Your capital will be at risk and there is no guarantee of any investment return. The value of investments may go down and you could lose all of your investment. Private company investments are not listed on any market and this means that you may not be able to sell them when you want to do so. This sort of investment does not provide a reliable source of income. The tax benefits of private company investing depend on your personal circumstances and on compliance with the relevant rules. Past performance is not a reliable indicator of future results. We do not provide investment, tax or legal advice.