By Daniel Lanyon on Sunday 6 October 2019
The investment trust, recently renamed, sold its largest position in the Irish firm at a modest premium.
Pollen Street Secured Lending, formerly P2P Global Investments, saw its Net Asset Value (NAV) soar to 0.82 per cent in the month of August following the sale of Castlehaven Finance.
The firm’s, an Irish alternative development and bridging finance lender, sale to Avenue Capital Group, was first mooted at the end of August.
The fund had provided financing in excess of €385m to Castlehaven since 2016 and had a 25 per cent equity stake in Castlehaven Finance, together with other loan and debt interests.
Gross proceeds from the sale are c.€250m, with half of the proceeds received on a deferred basis over six months to reduce the impact of cash drag. The deferred amount will continue to accrue income during this time.
The sale has helped NAV total return to date in 2019 of 3.7 per cent