Flight and Partners Recovery Fund

The Flight and Partners Recovery Fund Limited (the “Fund”) is a Guernsey-domiciled closed-ended investment company listed on The International Stock Exchange (“TISE”)

The Fund was incorporated in January 2008 and first admitted to the Official List of TISE in March 2008.

Flight & Partners Limited, an FCA authorised UK company, acts as the Manager of the Fund.

Rcapital Partners LLP (“Rcapital”) acts as the Investment Adviser to the Fund. Rcapital is a specialist turnaround investment firm that has been operating since 2004 and has made over 70 investments in this period.

Investment Strategy

The Fund aims to achieve attractive risk-adjusted returns over the economic cycle through investment in stressed and distressed small- to medium-sized UK businesses with a fundamentally sound business model that offer strong prospects for recovery.

The Fund invests in transactions that are originated, executed and managed by Rcapital in its role as Investment Adviser to the Fund. Rcapital aims to use its financial restructuring and operational turnaround capabilities to improve the performance of acquired businesses.

The Fund’s investments are made in the form of loans that are secured against the underlying assets in the investee company. Loans are provided at a minimum interest rate of 10% or 6% over base rate, whichever is higher. The Fund also receives an equity stake at nominal cost, equal to 30% of Rcapital’s overall equity position in the investee company.

The Fund’s investments are valued in accordance with the International Private Equity and Venture Capital valuation guidelines (IPEV). Equity interests in investee companies are reviewed with the Auditors and, where they are deemed to have value, this is included in the net asset value of the Fund.

Investment Attractions

The Directors consider that the primary attractions of the Fund are as follows:

  • Downside protection offered through investments in the form of secured loans
  • Attractive income yield on loans
  • Equity upside received at nominal cost
  • Access to Rcapital’s deal flow and restructuring expertise
  • It benefits from an obligation by Rcapital to make good any losses on loans from the realisation of its equity interests in Fund companies

Past Performance

Quarterly and annual performance of the Fund over the 7 years to 31 December 2019 was as follows:

Flight Fund table

Please note that past performance is no guarantee of future results.

Further information

The Fund is only suitable for accredited investors and is not permitted to accept investment from retail investors. Investors may lose some or all of their investment in the Fund and the Fund offers limited liquidity. If you qualify as an accredited investor and would like to receive further information on the Fund, please submit your details. Interested parties should seek appropriate professional advice before making any investment decisions.

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Contact Alex John for more information