Waterman
Waterman
Waterman Bridge Finance Income Fund

Key Investor Information Document

The Waterman Bridge Finance Income Fund LP

Fund Objectives and Investment Policy
Investors will be investing in limited partnership participations in the Waterman Bridge Finance Income Fund LP. This LP will on-lend its resources to Waterman 104 Limited, an Isle of Man company specifically set up to provide bridge finance secured by a first charge on UK property. The LP will receive fees from Waterman 104 up to a target rate of 2.5% per quarter. Loans are typically for 6 months, the LTV is 75% of the 90 day open market valuation (70% for commercial property) and the maximum for any one Loan is £500,000 or 20% of the Fund, whichever is the greater.

Investors may invest either directly into the partnership or via an Exempt Unauthorised Unit Trust for qualifying investors.

Risk and Reward
The key risk of the Fund is that the property on which a loan is secured falls in value such that the Fund does not recover the capital and interest due. A number of risk mitigation techniques are used by the Waterman group to reduce the possibility of this happening. The Fund also intends to maintain approximately 10% of its resources in liquid assets. On the Seven point IMA Risk scale, the Fund is considered by its Operator to be at risk level 5.

Investors should note that the Fund's return is a maximum of 10% in any 12 month period and that no distributions are expected for the first two quarters of the Fund's existence.

Charges
The end Borrowers pay the costs of their borrowing, thus the Fund's only costs are those of administration. The annual administration charges are as follows:

The Operator

£20,000

Trustee of the Unit Trust

£9,000

The General Partner

¾% of the Participations in the Fund

In addition an introducers Fee of 3% of the Investment may be available to qualifying intermediaries. Investors should be aware that the revenue to be received from Waterman 104 is applied firstly to the Fund's costs and secondly to achieving the priority Target Return.

Past Performance
The Fund is being promoted on the basis that Waterman Capital has, through its other finance providers, been successful since 2007 in providing bridge finance and achieving annual returns substantially in excess of the Target Rate being offered to investors. Waterman Capital Limited has completed 44 loans totalling £30m since 2006, with no bad debts.

How to apply
An Information Memorandum and Application Forms are available from

Waterman Corporate Services
invest@waterman-group.com
www.waterman-group.com