Prestige Funds has launched two new distribution share classes, to meet increased demand in its Commercial Finance Opportunities Fund (CFO) from both institutional and advisory clients worldwide.

CFO is a Luxembourg-based, open-ended SICAV, developed in 2013 and has grown to almost $200 million in assets under management. The fund has generated an average annualised US dollar return of 7.35 percent.

It is a direct lending fund that focuses on invoice, asset and commercial finance opportunities, primarily in the UK. It operates a highly diversified investment portfolio of short term commercial and industrial loans.

The new share classes will boost liquidity for investor portfolios, and be similar to a bond coupon or equity dividend.

The new share classes are Distribution ID and Distribution D.

Distribution ID share classes are aimed at institutional investors with a minimum investment of $1,000,000 and quarterly liquidity on 90 days’ notice, while Distribution D share classes are targeted at advisory investors with a minimum investment of $100,000 and quarterly liquidity with a notice period of 30 days.

Craig Reeves, founder of Prestige Funds, commented on the growing interest in private lending strategies.

 He said: “Investor appetite for private lending strategies has been growing steadily over the last few years as government bond yields have descended into negative territory. With no sign of this trend reversing in the near future, more investors have been investigating private debt funds as an alternative.”