OVERVIEW

OPPORTUNITY
  • Continuing disruption in financial markets, combined with unconventional monetary policy, has distorted asset prices
  • Increased regulations and capital requirements for banks has limited their capacity and willingness to lend particularly in Europe and the US
  • There is excess demand for financing from financially sound businesses, thus offering an opportunity for private debt strategies to obtain superior returns relative to the risk taken
  • This mispricing and opportunity is particularly acute in the SME space
STRATEGY
  • To invest in private debt transactions, sourced through ACPI’s extensive relationship network
  • to target attractive risk adjusted returns in transactions where we know the borrower
  • To create a diversified debt portfolio, investing in developed Europe, UK and US
  • Strategy to be implemented through an ICAV, registered in Dublin
OFFERING
  • ACPI Principal Investments team with an immense wealth of collective experience in sourcing, structuring and recovering debt transactions
  • A self liquidating fund where interest and capital received will be distributed to investors on a quarterly basis
  • The base currency of the Fund is EUR. There will also be USD and GBP hedged share classes
  • The Fund will seek to achieve its investment objective through investments in debt securities that are typically (i) unlisted; (ii) secured obligatiobs of the issuers; (iii) have a maturity between 1 and 3 years; and (iv) have principal amounts ranging from EUR7.5mn-EUR30mn.

INVESTMENT OPPORTUNITY

The retreat of the banks from traditional lending markets has disrupted financing flows – particularly for SMEs. In the internet age, new entrants are normally market disrupters, but new non-bank lenders are not stepping into functioning markets – instead they are moving into areas vacated by the banks. Constrained bank lending impacts Europe more than the US, because banks have traditionally been a more important source of financing for European corporates.

TRACK RECORD

Our private debt pipeline was such, that we envisage that it will be more efficient to execute transactions via a Fund. The Fund will permit ACPI to secure certain deals at more attractive pricing. When the Fund is substantially invested, ACPI will evaluate launching a second fund to continue servicing this niche private debt strategy.

ACPI’S PRIVATE DEBT TRACK RECORD
  • ACPI’s Principal Investment team has originated, structured and exited approximately USD300m in private debt transactions since 2011.
  • Average IRR for exited transactions has been circa 13% per annum, net of fees.
INVESTMENT PLATFORM
  • ACPI’s investment team professionals leverage each other’s particular expertise, helping ensure more holistic investment decisions.

KEY FUND INFORMATION

Investment manager
ACPI Investments Limited
Launch date
31 March 2017
Annual management fee
1.75% on drawn capital
Performance fee
15% over a 5% hurdle IRR to investors, with no catch-up
Hurdle
5%
Minimum investment
100,000 - USD, EUR or GBP
High-water mark
None
Currency classes
USD, EUR, GBP
Subscriptions
Capital commitment period of 18 months with drawdown notices
Lock-up
4 years, self-liquidating with capital being returned to investors quarterly
Fund structure
ICAV Ireland
Fund manager
Carne Global Fund Managers (Ireland) Limited
Administrator
Link Fund Administrators (Ireland) Limited
Custodian
BNY Mellon Trust Company (Ireland) Limited
Auditor
Deloitte

Questions?

Please feel free to contact if you have any questions.

ACP Investment Partners LLP is an unregulated Limited Liability Partnership and promotes the regulated financial services of ACPI Investments Limited (ACPI IL) & ACPI IM, which are authorised and regulated respectively in the United Kingdom by the Financial Conduct Authority and in Jersey by the Jersey Financial Services Commission.

This promotion has been approved by ACPI Investments Limited (FCA Register IRN 192403).

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