ZEPS Investment Strategy

A portfolio of secured loans underpinned by UK real estate

About the Zenzic Estate Planning Service

The Zenzic Estate Planning Service aims to help investors find attractive, stable returns by investing in shares issued by companies whose subsidiaries will deploy the capital in a diversified portfolio of loans to real estate companies secured against a wide range of real estate assets.

Zenzic will originate, underwrite and asset manage all ZEPS transactions. Zenzic can demonstrate a successful track record of lending since inception. It concentrates on loans secured by high-quality real estate, focusing on established locations with affordable price points and small-medium sized schemes. These metrics are designed to ensure that ZEPS only finances projects that are widely affordable by a large cross section of buyers, avoiding sales pressure caused by highly priced property or saturating local areas with overly large schemes.  

ZEPS diversifies its portfolio by reference to geography, developer, scheme size and real-estate asset-class, reducing its exposure to concentration risk. All loans are secured against UK real-estate typically by an asset-level charge. Zenzic’s credit analysis process involves a significant number of data metrics to assess loan viability and a three-stage credit committee approval process.

Zenzic Advisory Services

  • Originate high quality real-estate investment opportunities
  • Arrange, structure and deploy the funding of the investment
  • Manage the transaction through its entire lifecycle
  • Take all action necessary to protect the investment and maintain its value
  • Provide good governance and reporting to the counter-parties

Example Transactions

Hythe, Kent

  • Loan Purpose: Residential Development
  • Loan Amount: £3.3m
  • Loan to Value: 70%
  • Features: Whole Development Loan. demolition of an existing bungalow and the erection of 4 x 3-Bed Apartments (Avg. 1,211 sqft) and 2 x 3-Bed Detached Houses (Avg. 1,389 sqft)

Wood Green, London

  • Loan Purpose: Residential Development
  • Loan Amount: £860k
  • Loan to Value: 64%
  • Features: Whole Development Loan. To provide a whole loan for the refinance of an existing loan and the development of 3 flats in Wood Green, London. 1x1 bed flat (452 sqft ), 1x2 bed flat (764 sqft ), 1x3 bed flat (797 sqft)

York, Yorkshire

  • Loan Purpose: Residential Development
  • Loan Amount: £1.5m
  • Loan to Value: 75%
  • Features: Senior Development Loan. To provide a whole loan to an SME housebuilder for a site located in Coney Street, York, in order to convert into 8 flats (2x Studios and 6 x 1 Beds) to be used as holiday lets.

Investment Options

ZEPS offers you the opportunity to select from two distinct investment strategies (‘Income’ or ‘Growth’) or to create a bespoke combination of both (‘Blended’). Your financial advisor will be able to advise you on the most suitable strategy to meet your needs. The ZEPS minimum subscription is £25,000 after any initial Financial Advisor fees, with a minimum investment per strategy of £5,000.   

  • Growth Strategy

If you are looking purely for capital growth, the Growth Strategy offers a target return of 6% per annum over the medium-to-long-term.  Returns will be accumulated during the lifetime of your investment and reinvested, rather than paid out as income. 

  • Income Strategy

If you are looking for income, the Income Strategy offers a target return of 6% per annum, over the medium to long term. Returns will be calculated and paid out quarterly. Ad hoc withdrawals of capital may be possible (but not guaranteed).

  • Blended Strategy

For those who are looking for both income and capital growth, you can select a blend of the ‘Income’ and ‘Growth’ strategies.  You are able to create a bespoke portfolio strategy that is most suitable for your age, health and financial situation.  This blend can be changed over time to reflect your changing needs or circumstances.

  • A
  • B
  • C
  • D
  • E
  • F
  • G

Investment Allocation

  • Growth Strategy
  • Income Strategy

How it works

ZEPS is an investment service where the ZEPS fund manager (the “DFM”), invests your money in the shares of chosen trading companies. These trading companies and their subsidiaries will then lend that money by advancing secured loans to real estate firms and developers.

Investor
Subscription
Zenzic Estate Planning Service (ZEPS)
ZEPS buys shares in lending companies
Income
Growth
Lending companies make loans to real estate companies
Target Annual Rate of Return
0 %

Growth
&/or Income

Investment Options

Potential IHT Saving
0 %

Who can apply?

You should only apply if your financial advisor has certified that:

  • participation in ZEPS meets your objectives;
  • you have the expertise, experience and knowledge to understand the risks; and
  • you are able to bear the associated risk involved in participating in ZEPS.

Financial advice, assessment and customer due diligence procedures

You must arrange for a financial advisor authorised by the FCA to carry out:

(i) a suitability assessment in accordance with COBS 9 (“Code of Business Source Book 9”) to ensure that you have the requisite knowledge and experience to participate in ZEPS, and that it meets, and is suitable for, your needs in light of your financial situation and investment objectives; and

(ii) Your financial advisor has completed all Financial Advisor Declaration pages within the Application Form which covers the verification of identity, suitability and initial fees.

Minimum Investement
£ 0 K

Asset
Backed

Investment

DAYS NOTICE TO WITHDRAW CAPITAL
0

How to Invest

Apply

You will need to complete the enclosed application form (and suitability questionnaire where applicable), which includes the investment management agreement by which you appoint the ZEPS DFM to act on your behalf and return it with appropriate identification documents to the ZEPS DFM. You
can make a payment by cheque or bank transfer, using the details on the application form.

Account Opened

Once the ZEPS DFM or its appointed custodian has reviewed the details of your application, the appointed custodian will also write to you to welcome you as an investor and confirm that your funds are ready for investment.

Funds are Invested

Your subscription, less any initial fees, will be invested into one or more Direct Lending Companies. This will usually happen within one month. You will receive a contract note from the ZEPS DFM or its appointed custodian confirming the details of the investment.

Valuations & Withdrawels

Throughout the investment period, we will send you updated valuations of your investment upon request, together with a quarterly investor statement showing any movements on your account. You may request ad hoc withdrawals at any time, or regular withdrawals commencing 12 months after your initial subscription.

Business Relief Qualification for investments in shares

Your subscription, less any initial fees, will be invested into one or more Direct Lending Companies. This will usually happen within one month. You will receive a contract note from the ZEPS DFM or its appointed custodian confirming the details of the investment.

Investment Inherited

Your subscription, less any initial fees, will be invested into one or more Direct Lending Companies. This will usually happen within one month. You will receive a contract note from the ZEPS DFM or its appointed custodian confirming the details of the investment.

Fees and Charges

The Annual Management Charge is only applicable if the annual return exceeds 6.0% 

*ad hoc withdrawals only

Get in Touch

Initial Fee

0 .0%

Annual Management Charge

0 .0%

Dealing Fee*

0 .0%
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IMPORTANT NOTICE

This document, has been prepared by ZSL Capital Limited (“ZSL”) and has been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”) by Sapphire Capital Partners LLP on 21/11/2023.

Investing in early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. Any investments are targeted exclusively at investors who understand the risks of investing in early-stage businesses and have received financial advice. Any pitches for investment are not offers to the public. The value of an investment may go down as well as up and an Investor may not get back the full amount invested and may, therefore lose some or all of their investment.

Zenzic Capital is not authorised or regulated by the Financial Conduct Authority.