Axiom Alternative Investments has announced plans to raise at least £100 million from institutional and sophisticated investors, for a fund investing in debt purchased from European banks.
The fund will aim to generate a 10% annual return, including a 6% annual dividend payment, by investing in financial instruments sold by institutions seeking to comply with the Solvency II and Basel III regulatory regimes. Axiom managing partner, David Benamou, commented: “As European banks continue to repair their balance sheets and to recover from the crisis, we believe that considerable investment opportunities will arise in relation to subordinated debt that is eligible as regulatory capital.
“In the long term, this hybrid debt offers an attractive risk/return profile, especially in the ‘yield desert’ we find ourselves. With our strong expertise in hybrid debt, we believe that we are well-placed to manage a fund that would allow investors to benefit from this asset class.”