Swiss real estate credit manager LynxCap Investments AG and investment platform Tokinvest have launched a digital bond backed by private credit for retail investors in the Middle East.
LynxCap will manage and source the underlying private credit investments and structure the bond. The firm has invested in European real estate credit for the past 19 years and manages more than €500m (£430.9m) in collateral.
The bond will be distributed in the Middle East through Tokinvest’s Dubai-based platform, which is regulated by the Virtual Assets Regulatory Authority.
The firms said the bond opens up the private credit asset class to retail investors, who have historically been unable to access it due to high minimum investment thresholds, investor gating, geo-blocking, opaque structures and the absence of regulated distribution channels.
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“Private credit has established itself as a core institutional asset class, providing access to stable, yield-focused investment opportunities beyond traditional fixed income markets, yet most investors have never had a seat at the table,” said Scott Thiel, chief executive and co-founder at Tokinvest. “This bond is changing that.”
According to the firms, the bond has a coupon rate of 10 per cent per annum, payable quarterly, with a minimum investment of €10,000 and a maturity date of 15 May 2030.
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“This digital bond allows us to extend that capability to a new class of investor, with the same rigour and discipline we apply at the institutional level,” said Peter Kadish, managing director of transactions at LynxCap Investments AG. “Tokenisation is a structural shift in who gets access to quality fixed income.”
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