A London listed fund first for Guernsey's IFM
09 March 2015
International Fund Management Limited (IFM) is understood to be the first independent, Guernsey-licensed fund manager to act as an alternative investment fund manager for the Initial Public Offering (IPO) of a new London-listed fund.
IFM, which is part of the Praxis Group, is acting as Alternative Investment Fund Manager (AIFM) for the Sequoia Economic Infrastructure Income Fund Limited, which raised £150 million and launched on 3 March.
As the AIFM, IFM will delegate portfolio management to the advisor, Sequoia Investment Management Company, but will maintain responsibility for ensuring the fund operates in line with laws, regulations and the Alternative Investment Fund Management Directive (AIFMD) and that risks are managed, reviewed and controlled.
"Structuring in this way allows the fund to be placed to certain European investors via private placement, and offers a flexible solution to the challenges of meeting AIFMD requirements. Our solution takes on responsibility for the AIFM and provides the board with a dedicated and experienced team providing robust reporting to the relevant authorities and the fund," said Chris Hickling, Managing Director of IFM.
"IFM has a strong track record and already provides fund management services to a number of funds with more than US$1.3billion under management. The company has built up a wealth of experience and strong governance framework since launching in 2006 and it is these strengths that have led to us being appointed as AIFM for the Sequoia Economic Infrastructure Income Fund."
Sequoia Economic Infrastructure Income Fund is a newly formed fund focused on the economic infrastructure sector. The fund expects to target investments in operational projects in the transport, transportation equipment, utilities, power, renewable energy, telecommunications infrastructure and infrastructure accommodation sub-sectors.
UK law firm Nabarro advised Oriel Securities as sponsor and sole bookrunner of the fund's IPO on the Main Market of the London Stock Exchange. Praxis Fund Services Limited will act as administrator of the fund. Ogier undertook the legal work and KPMG Channel Islands Limited acted as reporting accountants and as independent auditors.
Frances Watson, Partner at Ogier and who led the legal team on the establishment of the new fund, said: "It is good to see another example of Guernsey being chosen as the preferred domicile for a listed vehicle."
Ashley Paxton, CI Head of Advisory for KPMG, added: "This emerging asset class of infrastructure debt has a strong dividend yield story and the launch utilised our existing debt and infrastructure investment fund skillsets."
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