The prospectus of Brevan Howard Credit Catalysts has been approved by the UK Listing Authority following the announcement by Brevan Howard Capital Management on 14 October of the proposed initial public offering of the company.
BH Credit Catalysts is a closed-ended, Guernsey-incorporated investment company, proposed to have a premium listing on the Main Market of the London Stock Exchange in December 2010.
The company, a feeder fund, will invest substantially all of its assets in Brevan Howard Credit Catalysts Master Fund, an open-ended, Cayman-incorporated investment company which commenced operations in June 2009.
Shares will be offered to sophisticated and institutional investors and will be denominated in USD and GBP currency classes. US dollar shares will be offered at USD10 per US dollar share. Sterling shares will be offered at GBP10 per Sterling share.
Nagi Kawkabani of Brevan Howard says: “We believe that the credit markets present significant investment opportunities. During 2008 and 2009 the corporate and mortgage credit markets experienced price dislocations, resulting in securities being owned by investors who no longer wish to hold them. We believe that this environment, combined with there being a lack of capital to accommodate investors’ liquidity needs, has created opportunities for managers to be able to tactically invest capital and trade the credit markets. Further, we believe that investment in the credit markets is highly suited to a catalyst-driven trading approach.”
