P2P GLOBAL Investments (P2PGI) has sold its interests in Castlehaven Finance to Avenue Capital Group for €250m (£226.4m).
The sale includes P2PGI’s 25 per cent equity stake in the Irish alternative lender as well as loans and other debt interests. The deal value represents a modest premium to the company’s holding value of those interests, P2PGI said.
The sale completed on 23 August with the proceeds to be “redeployed in line with the company’s strategy of partnering with high quality specialist lenders to deliver attractive returns”, P2PGI said.
“We have had a successful relationship with Castlehaven Finance, provided them with a significant amount of financing and have been delighted with the development of the business since the beginning of the company’s partnership in 2016,” Lindsey McMurray, managing partner of Pollen Street Capital – P2PGI’s investment manager – said.
“We are happy to have contributed to Castlehaven Finance’s growth and wish the team every continued success.”
Since partnering with Castlehaven in 2016, P2PGI’s exposure has grown significantly in recent years and the fund has provided over €385m of financing to Castlehaven.
The disposal represents 32 per cent of P2PGI’s net assets, a note from Numis said, and raises questions about the impact of the sale on the company’s dividend as well as how proceeds of the sale will be redeployed.
P2PGI is paying quarterly dividends of 12p, a yield of 5.6 per cent, although this is below the target of 15p per quarter by mid-2018.