Connaught Asset Management (Guernsey) says investors in the £18m Connaught Income Fund Series 2 will receive 44 per cent of their initial investment back this week.
The Series 2 fund was suspended in March and a decision was made in June to wind down the fund.
Around £7.5m will be repaid to investors by 5 October and Connaught Asset Management (Guernsey) says all monies will be returned, minus the cost of winding down the fund. CAM (Guernsey) says it cannot yet estimate how much the winding down costs will be. The last loans made by Tiuta Development Finance, which used the fund as a funding line, will be redeemed by April. It is not yet know when the last monies will be returned.
A spokesman says: “At a meeting of the directors of Connaught Asset Management (Guernsey) Limited on the 1 October, it was confirmed that an initial capital distribution of approximately 43.5 per cent of the total investor funds is to be paid to investors in the Connaught Income Fund Series 2. Investors can expect to receive their capital distribution by Friday 5 October.”
The Connaught Income Series 1 fund was run by Connaught Asset Management, while the Series 2 fund was run by separate company Connaught Asset Management (Guernsey).
Connaught Asset Management was placed into administration last month after investors voted overwhelmingly in favour of placing the £118m Income Series 1 fund into liquidation.
The Series 1 fund was used to provide a £105m funding line to Tiuta International and the Series 2 fund was used as a funding line by Tiuta Development Finance, both of which were former subsidiaries of bridging lender Tiuta Plc, which was placed into administration last month.
Last month, Money Marketing revealed Tiuta Plc made a pre-tax loss of £37.8m in the 18 months to 30 September 2011.
CAM bought Tiuta International and Tiuta Development Finance, the Tiuta Plc subsidiaries that used the Series 1 and Series 2 funds respectively , for a £1 each in June. In July, Money Marketing revealed Tiuta International had been placed into administration by CAM.