LONDON (Alliance News) - Chenavari Capital Solutions Ltd's chairman Thursday said that the company's investment adviser has become increasingly selective in its approach, amid aggressive entrants to its space.
Chenavari Capital Solutions takes part in transactions driven by regulatory capital requirements and pressures on banks in the wake of the financial crisis.
Chenavari Credit Partners LLP is the company's investment adviser. It provides investment advisory services to investment manager Toro S.a.r.l..
"The investment adviser has continued to work through multiple regulatory capital transactions and is particularly conscious of a high pick up of demand for regulatory capital transactions from aggressive new players in the sector. In the light of this new demand, the investment adviser has become increasingly selective, choosing to pass on investments that are not expected to deliver robust relative value for the company," Trevor Hunt, chairman, said in a statement.
Reporting annual results from July 12, 2013, when it was incorporated, to the end of September last year, Chenavari Capital Solutions said its net asset value was GBP127.6 million as of September 30, with NAV per share amounting to 97.90 pence.
"Acceptance by national regulators of regulatory capital transactions continues to increase apace, as banks and regulators adopt a more open dialogue with each other. In some jurisdictions, such transactions are now becoming embedded as an effective risk management tool to be used in banks' normal course of business," Toro S.a.r.l. said.
"As part of this, most banks now intend to establish programmes as repeat issuers, which will drive volumes higher through the year. Capital pressures will continue through the year, with a seemingly endless stream of additional regulatory requirements that banks will be required to meet over the coming years," Toro S.a.r.l. added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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