Cru and Arch set up fund targeting private deals

The UK-domiciled CF Arch cru finance fund will use specialist investment firms to invest in short to medium-term private finance deals and is targeting annual returns of 2 per cent above the Bank of England base rate and annualised volatility of less than 3 per cent.

It aims to capitalise on the growth of the private finance market which has benefited in recent months from restricted credit and tightened lending in the financial markets. Minimum investment is £1,000.

Arc h chief executive Robin Farrell says: “The credit crunch has battered the balance sheets of major banks and there is a severe shortage of cash among existing lenders. A number of sound businesses are in danger of collapsing without immediate credit and there is huge demand for finance from the private sector. This makes it the ideal time to be investing in private finance deals, with which we can capture superior yields through highly predictable control investing.”