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 disintermediation.
Hadrian's Wall Capital Limited has selected Praxis Fund Services as administrator and International Fund Management Limited (IFM) as alternative investment fund manager to the fund. Both are part of the PraxisIFM group of companies.
"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.
Carey 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 communities.
"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."
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.