Sectors: 1064

SQN launches asset finance fund in Guernsey

11 July 2014

The Guernsey registered, closed-ended SQN Asset Finance Income Fund Limited was oversubscribed and has successfully raised £150 million to invest in equipment lease and asset finance arrangements in the UK and US.

Applications have been made for admission of the ordinary shares to the premium segment of the official list of the UK Listing Authority and to trading on the main market of the London Stock Exchange. Admission is expected to occur at 8am on 14 July 2014.

Peter Niven, Non-Executive Chairman of the fund, said: "We are delighted by the response from such a broad range of investors who have recognised the benefits of investing in this asset class. We have a diverse and exciting initial portfolio and pipeline of assets and we look forward to working with the investment manager as they build out the portfolio with a view to delivering strong returns for our new shareholders."

The fund will invest in equipment lease and asset finance arrangements in the UK and US, with a focus on business-essential assets with high in-place value and long economic life relative to the investment term. The investment manager will target assets in Agriculture, Energy, Environmental, Manufacturing, Material Handling, Medical, Modular Accommodation, Technology and Transportation sectors.

Jeremiah Silkowski, Portfolio Manager and Chief Executive Officer at SQN Capital Management, said: "We believe equipment lease investing generates consistent returns throughout the business cycle and our approach of focusing on business-essential, revenue-producing assets and equipment with high in-place value, is the optimum strategy to capitalise on this investment opportunity. The company will be the only diversified equipment leasing fund listed in the UK, with attractive target returns underpinned by regular non-correlated cash flows. We believe this presents a compelling investment proposition."

The company secretary, administrator and custodian is BNP Paribas Securities Services in Guernsey, the auditors are Baker Tilly in the Channel Islands and legal advice to the company was provided by Stephenson Harwood for English law and Mourant Ozannes for Guernsey law.

Mark Chambers, Corporate Partner at Mourant Ozannes, said: "It was a privilege to work on such a successful fundraising for an innovative asset class, with an experienced and professional team. It demonstrates once again that Guernsey remains an attractive jurisdiction for listed funds."

Colin Merrien, Location Head at BNP Paribas in Guernsey, said: "The decision of SQN Asset Management to domicile this fund in Guernsey demonstrates Guernsey's leading role in listed funds which shares a natural synergy with our strategy and commitment to the Island." 

Winterflood Investment Trusts acted as sole sponsor and broker for the company in relation to the issue. The total number of Ordinary Shares with voting rights in the company in issue immediately following admission will be 150,000,000.

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