CAREY Olsen and KPMG in Guernsey have advised Alcentra on the launch of the Alcentra Europe Floating Rate Income Fund Limited.
The fund is a Guernsey-domiciled, closed-ended investment company which raised GBP80m by way of an initial public offering (IPO) on the main market of the London Stock Exchange (LSE).
Carey Olsen provided specialist Guernsey legal advice and KPMG have been appointed as auditors and provided reporting accountant services in relation to the establishment of the fund. Oriel Securities sponsored the listing and UK law firm Linklaters advised on the UK elements of the deal.
The fund will invest in floating rate, senior secured loans to corporate entities domiciled in, or with significant operations, in Europe and predominantly rated below investment grade. The fund will target an annual return objective of 7% to 10% and aims to pay out a quarterly dividend initally targeted at 5.5% per annum.
The Carey Olsen team was headed by corporate partner, Tom Carey (pictured), and included associate, Oliver Quarmby. The KPMG team was led by Ashley Paxton, head of advisory, and senior manager, Gavin Niven.
Carey says: “For Carey Olsen is it another example of our expertise and experience in the preparation and launch of funds of this type. For Guernsey, it is another ringing endorsement of its premier position as a jurisdiction of choice for investment fund work.”
Paxton says: “This launch, achieved under challenging market conditions, demonstrates continued investor confidence in Guernsey’s closed-ended sector. It is encouraging that we are continuing to see interest from clients for these types of fund vehicles domiciled in Guernsey.”
“With our extensive experience of previous main market fund launches, our team complimented Alcentra and Carey Olsen throughout the listing process to deliver a seamless and high quality service.”