Offshore reflections in early 2016
London listed fund raisings remained very active in 2015 and the Deloitte transaction team worked on a number of local and international landmark deals. Our local team worked on new entrants to the London markets with market capitalisation of over £1.3 billion, and over £750 million of fund raisings for existing listed clients. Alex Adam, Deloitte Director, reports:
Transfer of a portfolio of Asset Backed Securities for Toro Limited - €330 million
Deloitte acted as reporting accountants on this landmark transaction for Chenavari and Dexion Capital, working closely with the other London, Guernsey, Luxembourg and Ireland-based advisors.
The initial public offering enabled the provision of liquidity to investors in a very successful asset-backed securities vehicle whilst providing permanent capital to the investment manager.
At the same time an origination structure was created to enable the securitisation of portfolios of debt instruments in compliance with the EU risk retention (“skin in the game”) rules. This engagement continued our strong relationship with Chenavari and Dexion by successfully delivering on a technically and logistically demanding transaction.
Follow-on offer and placing programme for John Laing Environmental Assets Group Limited - £45 million (initial placing)
Deloitte acted as reporting accountants for John Laing Environmental Assets Group Limited (the “Fund”). This successful infrastructure fund invests in environmental assets including wind and solar power and waste and water processing. The fund raise initially enabled the pay down of a credit facility and the placing programme provides for flexibility to allow the manager to take advantage of investment opportunities as they arise without the cash drag experienced by raising money too early.
Our comfort package allows the sponsor, Winterflood Securities, and the Fund to receive certain comfort around subsequent placings under the programme.
Sanne’s London Stock Exchange IPO
Deloitte acted as reporting accountants on the IPO of Sanne, a specialist global provider of fund administration, reporting and fiduciary services, on the premium segment of the London Stock Exchange. This was the first of the private equity backed offshore fiduciary groups to make the transition to a listed public company. We were able to bring the breadth and depth of our offering to bear on a locally-based success story.
Acquisition of Channel Islands Airtel businesses by JT – financial and tax due diligence
We supported the JT team in their due diligence, responding to a tight transaction timetable. Extensive work was needed to consider the complexities of the local operating environment in Jersey and Guernsey and provide appropriate industry expertise. Our team of local and UK practitioners delivered a focused and relevant response to meet the client’s needs. The transaction was approved by the Jersey States as part of a wider transaction which would see Bharti (Airtel’s parent) invest in JT. Channel Islands Competition and Regulatory Authorities are currently reviewing the transaction.
2016 outlook…successful exits and distressed disposals
For London listings, the growth in credit-focused vehicles, particularly in the crowd and fintech related sector, seems set to continue. We will continue to see ‘name’ funds growing scale and migrating onto the Main Market from more junior markets. Certain major PE funds look set to raise additional large funds within the islands. For financial services businesses, regulatory requirements, investors’ return expectations and focus by large groups on ‘core’ activities will continue to drive consolidation and divestment. Consequently we will likely see further successful exits to the public markets and some stressed or distressed disposals.