The Sterling Financial Group is touting a solid 5.22 percent return in the first quarter on its latest fund offering.
Launched in February, the New Providence Income Fund (NPIF) has targeted a mix of commercial, residential and industrial loan assets over the past few months. NPIF has seen a monthly return of 3.03 percent in February and 2.13 percent in March.
David Kosoy, the chairman and CEO of the Stirling Financial Group, said the return for investors has "exceeded my expectations". While the firm is on track for a 20 percent annual return, he said in the end a quarterly return of three to four percent is more realistic.
He told Guardian Business that NPIF has acquired approximately $16 million in loans thus far, up from around $11 million in early March.
"The funds continue to benefit greatly from the current lack of liquidity in the market and the highly restrictive lending practices exhibited by the major financial institutions," Kosoy said. "We are very pleased with the quality and volume of opportunities we are currently working on, and we expect the number of loan applications to continue to increase and generate profits for the funds from the loans sector in the U.S., Canada, The Bahamas, the Turks and Caicos Islands, and the U.K."
The Sterling Financial Group CEO also revealed that it has obtained a bank line of credit "at a very favorable rate".
With a rate "south of 5 percent", the hefty line of credit will help NPIF and its clients acquire more loan assets this year.
Back in March, the fund had already made five commitments.
Kosoy told Guardian Business the fund lent $2 million to a U.S. industrial property in Miami, invested $1.25 million in a residential property in Fiji, and made a $2 million commitment towards a house back here in Albany.
The fourth move by the fund was a $2.5 million loan towards a house on an island in The Bahamas. The fifth concerned a $3 million commitment to a local resort property.
Kosoy noted the fund also has access to $50 million in warehouse loans that can be moved over at any time.
NPIF is a Cayman Island domiciled regulated fund. It sets a minimum investment at $100,000. Previous funds, Kosoy noted, required a $500,000 to $1 million commitment.
"Now a lot of people feel comfortable putting in a lower amount to start, and then top up," he told Guardian Business. "You have to be accepted as an investor. If you're accepted, in the first of every month you can add a minimum of $25,000."
The NPIF is the third fund created by the Bahamas-based financial services provider.

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