Cheyne Capital, London-based hedge fund manager, is reportedly seeking to raise up to £300 million for a property fund that will invest in projects with a positive social impact.
The new impact property fund is scheduled to be launched in the third quarter of this year.
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The fund will be managed by Cheyne portfolio manager Shamez Alibhai and will enable investors to achieve a social benefit as well as a financial return.
The new fund will allow Cheyne to buy or construct properties and rent these to social services organisations. It will also reduce government capital grants at a time of increased need for social housing and related community schemes.
In addition, the firm is planning to target an initial fundraising of £100-£150million, with an eventual target of £300 million for the fund.
The Cheyne Social Property Impact Fund with an annual management fee of 1.5 % and levy a performance fee of 10% of returns above a hurdle rate of 6%, aims to deliver returns of 10- 12% a year net of fees.
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By GlobalDataAt the same time, Cheyne is planning to appoint New Philanthropy Capital, a charities think-tank, to assess each investment’s social impact.
