04 December 2017

New fund float hopes for a happy new year

Source: Australian Financial Review

Gryphon Capital Investments has partnered with listed investment specialist corporate advisor Seed Partnerships to list a trust with an objective of paying a RBA cash plus 3.50% per annum coupon paid on a monthly basis. Gryphon Capital Investments is a secured credit fixed income specialist that manages $1.8Bn purely for institutions. The Gryphon Capital Income Trust will allow retail investors to access a professionally managed portfolio of asset backed securities. With offices in the UK and Australia, Gryphon has deep specialised experience investing in international Asset Backed Securities and has successfully implemented the investment strategy for institutional clients.

The strategy will seek to provide retail shareholders with monthly cash income with a targeted net return of RBA cash plus 3.5%. The portfolio will be predominantly comprised of asset backed securities that will generally have floating rate interest rates, and have passed the rigorous Gryphon research process.

The ASX listed investment markets are starved of quality income bearing products. The Gryphon Capital Income Trust will be positioned as an important component of a balanced investment portfolio, offering stable yields and low risk of capital loss. The strategy is a compliment to a hybrid portfolio, as the asset backed securities sit higher up the capital structure and thus are lower risk and significantly lower volatility.

It is understood that Gryphon has secured a significant syndicate including Morgans, Bell Potter, Ord Minnett, Shaw and Partners and is likely to add a few more names including bank and brokers to the list in coming weeks. Seed Partnerships is the Corporate Advisor, McMahon Clarke is doing the legals and the accountant is Pitcher Partners. It is understood that the maximum amount that Gryphon can invest post IPO is up to $350M.

It is understood that Gryphon will be charging wholesale management fees (0.70%) and within those fees will pay all of the costs of the IPO. This is a continuation of the shareholder friendly structuring of LICs that began with VGI Partners at the beginning of the Financial Year. It is understood that Gryphon will not be issuing options.

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