Bahamas-based Sterling Global Financial announced yesterday that its indirect private placement offering to raise funds for its real estate lending vehicle, New Providence Income Fund Ltd (NPIF), closed successfully, demonstrating confidence in the economic climate for prudent real estate debt investment.

“We are very satisfied with the outcome of the offering and particularly pleased by the way in which it was handled through major Canadian financial institutions,” said Sterling president Stephen Tiller. “We believe the reception it received from investors is an indication of the appetite for carefully-aligned real estate debt investment.”

NPIF is the flagship fund of Sterling Global Financial, an integrated banking and financial services provider with headquarters on East Bay Street in Nassau. Along with its trust services based in Cayman, Sterling has more than $9 billion in assets under administration and some 1,500-plus clients.

The banks participating in the offering were led by GMP Securities LP, and included CIBC, Canaccord Genuity Corp and Raymond James Ltd.

Funds raised will help support NPIF’s mortgage lending programme in selected markets in the US, Caribbean, Canada and Europe when appropriate opportunities arise.

NPIF has funded many notable projects including the new Marriott Courtyard at the western end of historic Nassau. NPIF has averaged annual compounded net returns of 14.56 per cent since inception, a rate that has earned it plaudits from Barclays Hedge Fund as most successful fund since inception and earned it top rating on the Sharpe Index, which measures the relationship between risk and reward.

“We are very optimistic about our core markets and the opportunities we see,” said Sterling chairman David Kosoy.

“Interest from borrowers in the markets we serve continues to strengthen and we see this trend accelerating, bringing further borrowing demand. Additionally, our continuing emphasis on fast, flexible and reliable service in the US also provides ample opportunities as superior service is the key to success when you are entrusted with the management of funds and the preservation of assets.”