RE: Posted for newbies1 Jul 2020 13:25
From the podcast:
Gobind Sahney:
Well the aspirations are still basically the same, but the changes come in the approach to getting them accomplished. The simple answer is that we take Institutional Investor requirements and adapt them to market conditions. Now, for instance, the fees generated in a disposal and acquisition mandates turned out to be minimal and we determined that it was not really worth the time. So, as a cost benefit analysis, our first advisory mandate was merged into the fund. They liked the idea of the Fund and waited for that and merged into that. Effectively the Black Oak Alpha Growth Fund is no longer an advisory mandate and instead the short term credit facility that we announced is a type of advisory mandate. This came about over the days, weeks and months. After communication with our prospective clients we announced a proprietary hybrid product, which is essentially a debt equity structure. We had a roundtable with the top 10 insurance companies in the UK and we had great conversations with them. As these conversations progressed they liked what they saw, but some like the debt aspect of it while others like the equity aspect of it. So, essentially that hybrid has moved on to focusing on the individual pieces separately. Essentially the fund is the equity part and the bonds, that we are developing through the short term credit facility, is the debt part. So, this is an example of how the conversations have evolved, keep in mind that we're still having discussions on the advisory mandates for separate managed funds, these are ongoing and we’re very optimistic that these will still occur.
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