Maslow Capital has launched its first liquidity fund targeting live developments with cash flow challenges as a result of the pandemic.
The Maslow Liquidity Fund will acquire existing portfolios of loans, provide finance to complete facilities and refinance existing loans.
It is backed by long-dated institutional capital and will focus on opportunities of more than £50m, which could include aggregate loans.
The lender said there was demand from closed-ended funds with maturity dates that cannot be amended in perpetuity and will need to seek alternative sources of liquidity to return investor funds.
It added that open-ended funds may face investor redemption requests that cannot be met because of the lack of liquidity of the underlying loans.
Maslow said other structures that depend on loan redemptions and new investor money have experienced a slowdown, due to site closures, supply chain disruption and a lack of buyer demand during the crisis.
Chief executive Ellis Sher said: “The pandemic has caused companies to relook at their business models, and our view is that in our development funding niche existing lenders and borrowers will be seeking alternative ways of de-risking and generating liquidity, while protecting asset values by ensuring developments reach practical completion.”
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