all your questions answered
secured lending investment
About the Investment
What is Rudolf Wolff Secured Lending?
Rudolf Wolff Secured Lending (“RWSL”) is a specialist secured lending business that provides loans to experienced UK residential property developers. Investor funds are deployed into short-to-medium-term development loans secured by First Legal Charges over UK property assets.
What returns does the investment offer?
The investment currently offers:
- 10% per annum fixed return for a 2-year term
- 12% per annum fixed return for a 3-year term
How often is interest paid?
Interest payments are made quarterly and are paid gross of UK tax.
Investors can choose between:
- 2-year term
- 3-year term
Is capital repaid at maturity?
Yes. Subject to the terms of the investment and the performance of the underlying lending activities, capital is scheduled to be repaid in full at maturity.
Security and Investor Protection
How is my investment secured?
Each loan made by RWSL is secured by a First Legal Charge over UK property assets. These charges are publicly registered and can be verified through Companies House.
What is a First Legal Charge?
A First Legal Charge gives RWSL priority rights over the secured asset in the event of borrower default. This means RWSL has the first claim over the property before any subsequent lenders.
Do investors hold the First Legal Charge directly?
No. The First Legal Charges are held by RW Secured Lending Limited, the entity with which investors enter into their Loan Certificate agreement.
What happens if a borrower defaults?
In the unlikely event of borrower default, RWSL has the ability to enforce its First Legal Charge and recover value from the secured property assets.
The company believes the risk is mitigated by acquiring development sites below prevailing market value and by the value added through the development process, including infrastructure improvements, landscaping and residential unit installation.
What additional investor protections are in place?
RWSL has appointed an independent Security Trustee, NWG Trustees Limited, to hold security on behalf of Loan Certificate holders through a Security Trust Deed and Debenture arrangement.
Does the investment benefit from FSCS protection?
No. This investment is not covered by the Financial Services Compensation Scheme (FSCS).
Is my capital guaranteed?
No. As with all investments, capital is at risk and returns are not guaranteed.
regulation
Is Rudolf Wolff Secured Lending FCA regulated?
The secured lending activity undertaken by RW Secured Lending Limited is not a regulated activity and the investment itself is unregulated.
However, Rudolf Wolff Limited, which licenses the Rudolf Wolff brand to RW Secured Lending Limited, is authorised and regulated by the Financial Conduct Authority.
Does this mean investors are protected by FCA rules?
No. As this is an unregulated investment, investors do not benefit from the protections normally associated with regulated investment products.
Lending Strategy
What type of developments are funded?
RWSL primarily lends to developers involved in the residential parks sector, including the redevelopment of campsites and holiday parks into residential communities and modular housing developments.
Why focus on this sector?
The strategy targets a niche area of the UK housing market that benefits from:
- Growing demand from downsizers and retirees
- A shortage of affordable housing
- Strong demographic trends
- A funding gap underserved by traditional lenders
How experienced are the developers?
The principal development partners have approximately 25 years’ experience within the sector.
Who oversees lending decisions?
Lending and underwriting are overseen by Paul Chadney, an experienced lending professional with more than 25 years of specialist secured lending experience, including senior positions at Barclays, Santander, Clydesdale Bank and Together Money.
What due diligence is undertaken before a loan is approved?
Each lending opportunity undergoes comprehensive due diligence, including:
- Credit assessment
- Legal review
- Asset valuation considerations
- Security verification
- Ongoing monitoring throughout the loan term
Investor Administration
What currencies can investors invest in?
RWSL accepts investments in:
- GBP (Pound Sterling)
- EUR (Euro)
- USD (US Dollar)
- CHF (Swiss Franc)
Are there separate bank accounts for different currencies?
Yes. A dedicated GBP account is maintained, alongside a multi-currency account that accepts EUR, USD and CHF investments.
Can interest be paid in the same currency as my investment?
Yes. Interest payments can be made in the same currency as the original investment, provided payment instructions are supplied in that currency.
Can payments be made to overseas bank accounts?
Yes. Interest and capital repayments can be paid to bank accounts anywhere in the world, provided the account is held in the investor’s name.
Are there any fees payable by investors?
No. There are no direct fees payable by investors to RW Secured Lending Limited.
Investor Funds
Where are investor funds held?
Investor funds are received through Capitex (The Currency Cloud) payment infrastructure.
Are investor funds segregated?
Yes. RW Secured Lending Limited operates as a segregated special purpose vehicle (SPV) separate from Rudolf Wolff Limited.
Corporate Governance and Advisers
Who provides legal advice to RWSL?
RWSL’s legal advisers are Faegre Drinker, an international law firm with a London presence.
What role does Faegre Drinker perform?
Faegre Drinker provides ongoing legal support and has been involved in reviewing and drafting key legal and investment documentation.
Can investors rely on legal opinions provided to RWSL?
No. Investors should undertake their own due diligence and obtain independent professional advice where appropriate.
Who are the accountants to RWSL?
Moore Kingston Smith acts as accounting and financial adviser to the Rudolf Wolff group.
Have Moore Kingston Smith reviewed financial projections?
Moore Kingston Smith has reviewed aspects of the financial modelling and assumptions, although no investor-specific reliance reports are provided.
Reporting and Communication
What reporting will investors receive?
Investors do not receive direct reporting from RWSL. Periodic updates are provided to the adviser and broker network, which can then be shared with investors.
Is there a Rudolf Wolff guarantee?
No. There is no guarantee provided by Rudolf Wolff.
Investor rights are based on the contractual obligations of RW Secured Lending Limited under the terms of the Loan Certificates. Failure to meet these obligations would constitute an event of default.
About Lochburn Capital
What is Lochburn Capital's role?
Lochburn Capital acts as a marketing and capital introduction partner, helping introduce investment opportunities to financial advisers and professional investors.
How is Lochburn Capital compensated?
Lochburn receives a portion of the introducer commission paid in relation to successful introductions.
What experience does Lochburn Capital have?
Lochburn has over 12 years’ experience introducing investment opportunities to international advisers, with senior personnel possessing extensive experience in financial services and investment markets.