Mar 21 2018 at 12:15 AM
The listed investment boom rolls on with the arrival of the Gryphon Capital Income Trust seeking to raise $350 million in its upcoming float.
This is another one where participating investors will not wear the cost of listing. Instead it will be paid for by the investment manager, so on day one its net asset value should match the offer price of $2 a share.
Gryphon Capital is structured as a LIT (listed investment trust) not a LIC (listed investment company). Gryphon’s fixed income trust has previously been limited to institutional investors. It is being pitched as a defensive strategy in a market vulnerable to higher volatility and losses.
The strategy will target annual returns of 5 per cent, being the cash rate plus 3.5 per cent, net of fees on a through-the-cycle basis by investing in residential mortgage and asset-backed securities.
Distributions will be monthly beginning in July 2018. The offer, run by joint lead managers National Australia Bank and Morgans, opened on Tuesday.
Gryphon has named Seed Partnerships as its adviser, while co-managers are Ord Minnett, Bell Potter, Patersons and Shaw and Partners.
The deal comes after Melbourne-based stockpicker L1 Capital kicked off its latest fund-raising drive, a $600 million listed investment company, also overseen by Seed Partnerships.
L1 Capital founders and co-chief investment officers Mark Landau and Rafi Lamm launched the cash call in late February, together tipping in the first $10 million and locking it up for 10 years, to prove their commitment to the listed fund.