June 1, 2026
This material has been prepared for informational purposes only and should not be construed as investment, legal, or tax advice. It does not constitute an offer, recommendation, or solicitation to buy or sell any security or other financial instrument, nor should any information contained herein be relied upon for the purpose of making investment decisions.
Past performance is not indicative of future results, and the value of investments may fall as well as rise. While the information contained herein is believed to be reliable, no representation or warranty, express or implied, is made regarding its accuracy or completeness.
The opinions expressed are those of the author and are subject to change without notice. They do not necessarily reflect the views or official position of the institution or its affiliates.
In a decade defined by disruption, consistency is perhaps the most underrated quality in an investment. As the LGB SME Private Debt Fund turns ten this June, we reflect on a decade of compounding returns.
Share price (31 May 2026)
Launched at £100.00 (June 2016)
Annualised return since launch
Per annum, gross roll-up
Portfolio diversification
Across 15 issuers
The LGB SME Private Debt Fund has reached a notable milestone – a decade since its inception in June 2016, at a time when LGB was still in the preliminary stages of building its fixed income capabilities. It was launched with the clear purpose of generating steadily compounding returns through disciplined credit selection and the reinvestment of interest. Ten years on, that purpose remains unchanged and the conditions that make it relevant have, if anything, intensified.
In the past decade, the fund has navigated significant market dislocations, macroeconomic stress, and an investment environment that has grown considerably more complex for UK investors. So far, 2026 has added another chapter to that story. Geopolitical events – most notably the outbreak of conflict in the Middle East – have introduced fresh uncertainty into global markets. Against that backdrop, the steady, structured returns of the LGB SME Private Debt Fund offer a meaningful contrast to this volatility.
Since its launch at £100 per share in June 2016, the fund has grown to £195.55 per share as at 31 May 2026 — an annualised return of 6.93% per annum over nearly a decade, and 8.11% and 8.34% over the past five and three years, respectively. That track record has been built through a disciplined credit approach, consistent portfolio management, a focus on compounding returns and a clear, investor-aligned fee structure. The fund’s average holding period well exceeding three years is a testament to the confidence investors have placed in that approach.
The charts below illustrate the returns to investors who committed capital at different points in the fund’s history – each starting from an initial investment amount of £100,000.
Growth of a £100,000 lump sum — three entry points, one fund. All values as at 31 May 2026.
+£95,553 +95.6%
10 year investment
+£47,721 +47.7%
5 year investment
+£27,206 +27.2%
3 year investment
An investor who committed £100,000 at launch in June 2016 has seen their investment grow to £195,553 by 31 May 2026 – without a single negative calendar year – reflecting an annualised return of 6.93% per annum.
Net asset value per share since launch
Month-end NAV, £ – June 2016 to May 2026
As the fund reaches its tenth anniversary, the features that made it compelling at launch – investor control over the timing of returns, gross compounding, and credit diversification – remain fully pertinent.
The fund invests primarily in secured Medium Term Note (“MTN”) Programmes arranged by LGB Capital Markets, with selective exposure to public bonds for diversification. LGB Investments acts as the investment adviser to the Guernsey-based manager, ensuring the portfolio benefits from LGB’s established credit expertise and origination capability.
As at 31 May 2026, the portfolio holds 54 MTN and note issues across 15 different issuers. Over 50% of the portfolio matures within the next two years, providing a natural, laddered liquidity profile that does not rely on secondary market activity. Regular maturities and interest payments are systematically redeployed into new issues under LGB’s active MTN Programmes, keeping capital consistently at work.
The weighted average interest rate from the fund’s underlying investments – as at 31 May 2026 – sits at 10.3% per annum. This figure remains attractive in the context of the broader fixed income market, and particularly so against the volatility currently affecting equity portfolios. The latest fund fact sheet and updates on the LGB SME Fund can be found here.
One of the fund’s defining characteristics is its offshore gross roll-up structure. Rather than distributing interest income periodically, the fund automatically reinvests all returns, allowing capital to compound more efficiently within the fund. Investors are required to report an investment return only when the shares in the fund are sold. The difference between the sale and purchase price is taxed as income in the hands of UK tax payers. This relieves investors of the burden of annual tax reporting and enables the payment to be deferred until the timing is more favourable for each investor’s circumstances.
This structural feature has become an increasingly prominent consideration for many investors in recent years. With UK tax rates rising, allowances falling, and pension assets due to fall within the inheritance tax net from April 2027, investors are increasingly focused not just on the returns their investments generate, but on how and when those returns are realised. The roll-up structure speaks directly to that concern and remains relevant as the UK tax environment continues to evolve – though investors should seek independent tax advice to understand the implications for their own specific circumstances.
The fund is domiciled in Guernsey and authorised by the Guernsey Financial Services Commission. It is audited yearly by PWC Channel Islands. It is available in the UK on a restricted basis to Investment Professionals, High Net Worth and Sophisticated Investors (read the client classification specifics here).
Monthly redemptions are available, with a clearly defined NAV that is calculated and published at each month-end. Subscriptions are made with a minimum initial investment of £20,000. A minimum cash buffer of 5% is maintained to support liquidity, alongside a carefully managed schedule of maturities and amortisations. There is no upfront charge, and performance fees apply only when the net asset value exceeds its previous high.
Investors can invest in the fund through the LGB Investments platform or via an investment account at Heritage Capital Management Limited (HCML) in London or Seven Investment Management (7IM).
Transaction Manager
Alexia Rottet joined LGB in October 2025 as a Transaction Manager. Prior to LGB, she gained real estate experience by participating in the valuation of a property portfolio for A2immo.ch SA as a financial analyst, as well as working at Form Structural Design as an office manager. Alexia holds an MA in Entrepreneurship and Innovation and a BA in International Relations.
Relationship Manager
Ruby joined LGB in December 2024 as an Assistant Relationship Manager for our investing clients. She is responsible for all day-to-day transactions with investment clients and oversees the LGB Investments Platform and Deal Hub. Prior to LGB, Ruby worked at FHIRST, a start-up where she collaborated with the co-founders on revenue growth and improving client experiences. Ruby graduated with a First-Class degree in History from Durham University, and has obtained the CISI Level 4 Diploma in Investment Advice.
Finance Manager
Following a degree reading Chemistry at The Queen’s College, Oxford, Antonia trained to become a chartered accountant at a London-based audit firm. She then moved into the tax sector joining EY and completing the chartered tax adviser qualification. She then gained further experience working as a finance director within industry at a family office / hedge fund.
Programme size: £20m
Establishment Date: December 2017
Number of issues: 12
Sector: Marine tracking
Focus: Maritime surveillance and management
Programme size: £25m
Establishment Date: XX 2017
Number of issues: 20
Sector: Financial services
Focus: Loans and leasing
Associate Director
Omar joined LGB in February 2026 as an Associate Director in the Capital Markets team. He brings over five years of experience from NatWest, where he worked across the Leveraged Finance Origination and Portfolio Management teams. During this time, he supported a broad range of businesses from venture-backed to large-cap companies, with a primary focus on the mid-market. His experience was sector agnostic, and the majority of the companies he worked with were sponsor-backed, giving him extensive exposure to private equity-led transactions and capital structures. Omar holds a degree in Accounting and Finance from The London School of Economics & Political Science and is a Chartered Banker.
Adviser
Charles has played an important role in developing LGB & Co.’s investment approach by encouraging a focus on investing in businesses with strong IP or know-how with recurring revenue business models that can prosper throughout economic cycles. Charles brings over 30 years’ experience of investing in privately-owned and publicly-listed small and mid-market companies. He is a director of Larpent Newton & Co. and Hygea VCT plc. Charles qualified as a Chartered Accountant at Peat Marwick, now part of KPMG.
Adviser
Lisa has worked with LGB since 2015 in supporting the on-going cultural and organisational development of the firm, providing advice on strategic people matters. Since 2006, Lisa has been running her own consultancy and executive coaching business, People Possibilities Ltd. Her work is focused on supporting clients at an organisational, team and individual level to enable high performance,improve leadership capability and effect cultural and behavioural change. Previously Lisa has held senior HR leadership positions with Schroders, ABN AMRO and HSBC. Lisa graduated from the University of Birmingham with an honours degree in International Relations & French. She is a Fellow of the Chartered Institute of Personnel and Development (CIPD) and a qualified Executive Coach.
Chairman
Simon became non-executive Chairman of the Board of LGB & Co. with a focus on growth and strategic initiatives in December 2025. Simon has extensive experience in capital markets and wealth management. He previously ran the client and investment business of Heartwood and became Chief Executive in 2008. He led its well-regarded acquisition by Handelsbanken in 2013. Simon subsequently became NED and Chair of AIM-listed WH Ireland Group PLC. He was also asked to represent the wealth management sector on the FCA Smaller Business Practitioner Panel from 2013-2016.
Associate Director
Megan joined LGB in 2021 as a Relationship Manager. She is responsible for all day-to-day transactions with investment clients and oversees the LGB Investments Platform and Deal Hub. Prior to LGB, Megan worked at Puma Investments, a tax-efficient investment provider, in the sales and investor services team. Megan graduated from the University of Bath with a Bachelor of Science degree in Psychology, and has obtained the CISI Level 4 Diploma in Investment Advice.
Managing Director
Simone joined LGB in 2012 and is responsible for LGB & Co.’s business with institutional investors, wealth managers and sophisticated private investors. Simone’s team provides access to a range of compelling investment opportunities with a particular emphasis on structuring laddered portfolios of fixed income. In addition, the team manages portfolios of clients who have entered into advisory agreements with LGB Investments, and advises the fund managers of the Guernsey-based LGB SME Private Debt Fund. Prior to joining LGB & Co., Simone worked in the institutional fixed income department of Citigroup Global Markets. She began her career at Citigroup Private Bank in Geneva. Simone graduated from the University of Lausanne with a degree in HEC, Business Administration. She is a Chartered Member of the Chartered Institute for Securities & Investments and a Director of LGB.
CEO
Cedric was appointed CEO in July 2022 after a period of 18 months as a COO. Cedric spent 15 years working on the energy and commodities sales and trading desks for global banks (BNP Paribas, BAML and MUFG). He gained extensive international exposure, being based in London and Singapore and covering transactions in all geographic regions. Cedric graduated from Global Executive MBA at INSEAD in 2018 and started working in the capital markets space for growth-stage companies. He is also a director of LGB.
Managing Director, Capital Markets
Andrew founded LGB & Co. in 2005 and is managing the Capital Markets team. He has a particular focus on the development of strategic relationships with corporate clients and business partners. Prior to founding LGB & Co., Andrew was a Managing Director at Citigroup Global Markets, where he was responsible for its fixed-income business with private banks and retail institutions. Earlier in his career Andrew worked at Schroders in London and Tokyo. Andrew graduated from Oxford University with a degree in Modern History. He is a chartered member of the Chartered Institute for Securities & Investment.