The Guernsey-domiciled Hadrian's Wall Secured Investments
has become the first London Stock Exchange (LSE) Main Market initial
public offering (IPO) of an investment company in 2016.
The company raised initial gross proceeds of £80 million
following an initial placing and will invest primarily in UK
commercial loans secured by a range of assets, including equipment,
plant and machinery, real estate and trade receivables, to provide
capital to under-served segments brought about by ongoing financial
"We are delighted that Hadrian's Wall Capital Limited
has chosen to domicile their new London Stock Exchange listed fund
in Guernsey and utilise the services of International Fund
Management Limited as alternative investment fund manager and
Praxis Fund Services Limited as administrator. We are looking
forward to a long and prosperous relationship with Hadrian's
Wall Capital Limited," said Chris Hickling, managing director,
International Fund Management Limited.
Olsen advised on the Guernsey aspects of the admission,
including the incorporation and registration of the Guernsey
company. Carey Olsen's team included Partner Ben Morgan, Senior
Associate Annette Alexander and Associate Alexandria du Jardin.
Advocate Morgan said: "Uncertainty regarding the EU
referendum has prevented a number of IPOs from going ahead this
year. Guernsey is seen as a jurisdiction of choice for entities
listing on the LSE and Carey Olsen is well known for its funds
experience. We advised on over 60% of the Guernsey-domiciled
investment company IPOs in 2015."
IFM will delegate portfolio management to Hadrian's Wall
Capital Limited, however will maintain responsibility for ensuring
the fund operates in line with laws and regulations ensuring that
risks are managed review and controlled. Hadrian's Wall Capital
Limited, acting as Investment Adviser, specialises in advising with
respect to debt investments.
"We are very pleased with the service, effort and
professionalism provided by the team at PraxisIFM. They worked
extraordinarily hard and persisted through difficult and
challenging market conditions," said Ron Miao, Chief Operating
Officer, Hadrian's Wall Capital Limited.
David Warr, Chairman of Hadrian's Wall Secured Investments,
added: "In an environment that has not seen a main
market-listed investment company IPO since 2015, it is excellent
that Hadrian's Wall Secured Investments Limited's IPO
attracted a broad investor base of institutional investors as well
as investors from the wealth management and adviser
"It is encouraging to see such a strong appetite for a
company centred on SME lending in the UK; we believe it is
complementary to other listed investment companies that are
focussed on large business loans or unsecured consumer and small
business segments of the market."
Probably the most significant change from previous practice in Guernsey law under the Companies (Guernsey) Law 2008, which came into effect on the 1 July 2008, was the consignment to history of the concept of capital maintenance, which was discarded in favour of a solvency model as the basis of a company’s ability to pay distributions and dividends.
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