Boussard & Gavaudan Asset Management, LP is applying to list Sark Holding Limited, a new multi-strategy closed-ended investment company, on Euronext Amsterdam NV’s Eurolist by Euronext
Boussard & Gavaudan Asset Management, LP is applying to list Sark Holding Limited, a new multi-strategy closed-ended investment company, on Euronext Amsterdam NV’s Eurolist by Euronext.
The company will be subject to supervision by the Authority for the Financial Markets and the Guernsey Financial Services Commission.
Sark Holding will seek long-term appreciation of its assets through exposure to alternative investment strategies managed by the B&G Asset Management, a manager with approximately EUR 1.2 billion of assets under management as of 31 July 2006, spread across four funds. The proceeds of the IPO will initially be invested in B&G Asset Management’s award-winning Sark Fund, which has enjoyed a strong track record of risk-adjusted performance since its launch in March 2003. Sark Holding aims to list on the Eurolist by Euronext in Amsterdam in 2006.
- Intended listing on Eurolist by Euronext of a new multi-strategy closed-ended investment company registered and incorporated in Guernsey
- Proceeds will initially be invested into the Sark Fund. Over time, a proportion may be invested in other hedge funds and/or financial assets
- The Company’s investment objective is to seek a net annualised target return on its investment in the Sark Fund of 10% to 15%
- Maximum leverage of 100% of Sark Holding’s net asset value (NAV)
- Award-winning B&G Asset Management track record – net annualised returns of 7.8% and 7.9% for the Sark Fund and risk-adjusted annualised return (Sharpe ratio) of 2.3 and 2.2
- Very low correlations to traditional equity or fixed-income markets.
- Annual B&G Asset Management fee of 1.5% of NAV and performance fee of 20% of NAV enhancement – no management or performance fee at the Sark Fund level for Sark Holding to avoid multiple layering fees
- NAV discount management tools, including share buybacks and bar share issuance below NAV.
- Strong corporate governance with a fully independent Board of Directors
Alignment of shareholder and manger interests – performance fee with high watermark, significant management investment at IPO and an employee bonus scheme. incorporating a 50%, 18-month deferred element invested in Sark Holding.
‘B&G Asset Management is delighted to be creating a new closed-ended investment company for investors seeking access to the alternative strategies that B&G Asset Management has deployed with such success for its flagship, multi-strategy Sark Fund," says Emmanuel Gavaudan, CEO of B&G Asset management. "Sark Holding will aim to generate a net annualised return of 10% to 15% regardless of the direction of equity markets.
‘Sark Holding is a groundbreaking single manager alternative investment company. Through its permanent capital structure, Sark Holding will provide real liquidity to investors around the work wanting greater control over the management of alternative investment exposures."