LONDON, July 3, 2017 /PRNewswire/ --
Global Fixed Income Fund I has successfully exited its first investment following the takeover of Reading Football Club by Chinese investors. A senior secured loan of USD 25m was provided to the club in December 2015. The loan was partially repaid in Q1 2017 with the remaining principal of USD 17m repaid soon after the takeover in June 2017, over 2 years prior to maturity.
"The investment in the club was in line with the strategic approach followed by the investment team, which places strong emphasis on rigorous due diligence, tight management involvement and an insistence on robust collateral. We are pleased to have been part of the journey with Reading and proud to successfully exit an investment in the football asset class. Once again the investment team demonstrated its ability to risk monitor and manage esoteric assets." Said Zaki Nuseibeh a partner of Floreat Capital Markets Ltd.
The collateral backing the loan included a debenture agreement giving the Fund a fixed and floating charge over all the assets of the club, including the stadium and training ground, as well as an assignment of receivables from contracts including the club's parachute payments from the English Premier League.
The Fund plans to reinvest the capital in short order with a strong a pipeline and is actively sourcing new opportunities in the asset based lending space.
Floreat Capital Markets Ltd., the Investment Advisor to the Fund, is responsible for the fixed income investments of the wider Floreat Group.
Floreat Group is a privately-held, London-based independent financial group, with investments in debt, real estate and public and private equities.
SOURCE Floreat Capital Markets Ltd