M&G Credit Income Investment Trust in new fundraising

By Roger Baird on Tuesday 22 January 2019

Alternative Lending

The closed ended-fund plans to raise over £25m months after flotation.

M&G Credit Income Investment Trust has launched plans raise up to £25.3m in a share sale due to “strong demand” for its stock.

The closed ended-fund said it would place up to 25 million shares with institutions at 101p each. The placing will run from 21 January to 30 January, with results announced on the final day of the sale.

The fund’s board said that it has been “made aware that a number of initial public offering investors are seeking to increase their holdings in the company.” But added that because this significant demand “cannot be easily satisfied through liquidity in the market” it has decided to sell additional shares.

The placing comes after giant asset manager M&G floated the fund on the London market in November with plans to raise £250m, however the offering fell short raising £100m instead.

The aim of the fund is to offer private credit and debt exposure to investors. It invests across a broad range of assets including, commercial mortgages, leveraged loans and direct lending, public liquid and illiquid bonds, private placements, structured credit and infrastructure debt.

Analysts at Liberum said the firm targets “low asset volatility through a diversified portfolio of public and private credit opportunities”. They add that the portfolio is expected to contain between 50 and 100 holdings.

The fund expects dealings in the new shares to begin on 4 February.

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