Understanding the Risks

Granting of Indefinite Leave to Remain

The Education Bond® earns eligibility to apply for (ILR), but the successful receipt of ILR is not guaranteed. Whether an application is successful is at the discretion of the UK government’s Home Secretary whose decision is based on the supporting application documents.

Commercial Risks

In common with other bonds across the UK, the Education Bond® carries normal commercial risks, challenging macroeconomic and marketplace conditions and higher interest rates. There are also several technical risks associated with property finance, such as the illiquid nature of property investment. In the event of liquidation, a significant amount of time may be required before the Bondholder’s funds are returned.

Capital Risk

The value of the potential returns depends on the performance of the diversified trading strategy and other market factors outside the control of the funds. There can be no guarantee that the investment will meet its objectives or that suitable investment opportunities will be identified by Gaw Capital or InvestUK. The Lendco Bonds pay a fixed return of 4% per annum. If returns from the business financing activities conducted by the Company are insufficient to meet this rate of return, the Bondholders will not receive all of their capital back. In addition, if a loan repayment is delayed then Bondholder capital in that loan will not be returned until the underlying loan has been repaid.


Whilst not a direct risk, the Bondholder should be aware that income derived by applicants from investment in Government Bonds and Corporate Bonds issued by the Lendco will be subject to United Kingdom taxation.

For a comprehensive description of the anticipated risks associated with the Education Bond® Programme, please refer to the Information Memorandum in the Application Pack, but the main risks are summarised above.