1 Dec 2011
Alcentra Limited, a European sub investment grade asset manager and part of BNY Mellon Asset Management, is to launch the Alcentra European Floating Rate Income Fund Limited in early 2012.
They intend for the fund, a Guernsey closed ended investment company – referred to as “The Company”, to be listed on the main market of the London Stock Exchange. It is proposed that the fund will invest predominantly in senior secured loans and floating rate senior secured bonds issued by European corporate.
Alcentra aims for the fund to produce a quarterly dividend of 5.5% per annum in the first year of full investment and to raise £150 million. They intend to do this by sourcing a significant proportion of the portfolio at a discount to par, allowing the opportunity for capital gains, and using no leverage to achieve returns. GBP and EUR currency share classes will, subject to investor demand, be available at launch.
They intend for the fund, a Guernsey closed ended investment company – referred to as “The Company”, to be listed on the main market of the London Stock Exchange. It is proposed that the fund will invest predominantly in senior secured loans and floating rate senior secured bonds issued by European corporate.
Alcentra aims for the fund to produce a quarterly dividend of 5.5% per annum in the first year of full investment and to raise £150 million. They intend to do this by sourcing a significant proportion of the portfolio at a discount to par, allowing the opportunity for capital gains, and using no leverage to achieve returns. GBP and EUR currency share classes will, subject to investor demand, be available at launch.
David Forbes-Nixon, chairman and chief executive officer of Alcentra Limited, said: “We are excited to launch the Alcentra European Floating Rate Income Fund Limited which will bring our global expertise as one of the world’s top five largest active managers of sub-investment grade debt to investors seeking to benefit from what we believe is a compelling investment opportunity. The Company will aim to provide an attractive mix of steady dividends with some capital growth, combined with the downside protection of a secured asset class.”
