Honeycomb investment trust looks to raise new cash

By Daniel Lanyon on Tuesday 30 May 2017

Alternative Lending

The Alternative Credit specialist fund has announced a new share issuance programme, just days after its tie-up with MW Eaglewood.

The £200m Honeycomb investment trust is looking to issue £40m of new ordinary shares with plans in place to raise up to a total £105m of cash in the near term, according to regulatory filings.

The closed-ended fund invests in private lending in both business and consumer markets and, despite high profile backers such as Neil Woodford and Mark Barnett at Invesco Perpetual, it keeps a fairly low profile. However, the fund shot into the news last week when Pollen Street Capital, its investment manager, announced that it was merging with MW Eaglewood - which in turn manages the £820m P2P Global Investments portfolio.

The new firm, which will retain the name Pollen Street Capital, will become one of the largest Alternative Credit specialist asset management firms in Europe.

Under this new placing, the Honeycomb portfolio is proposing to issue up to 10 million new ordinary shares with an issue price of £10.50. This represents a 5.8 per cent discount to the closing price of £11.15 per share on 24 May 2017.

Lindsey McMurray, managing partner of Pollen Street Capital, says sinces the trust’s initial public offering (IPO) in December 2015 its loans have performed “strongly” and deployment has been speedy, both from the initial cash as well as two further raises.

“The company has made a good start to 2017 and has identified a significant pipeline of new business opportunities. The company is pursuing the placing programme in order to capitalise on these opportunities and to seek to continue to generate positive returns for investors, and believes that the proceeds received from the first placing will enable it to build on existing relationships and foster new ones within the markets in which it operates," she said.

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