Extended Seed Funding

26 Jul 2007 16:50

Arlington Group Ltd26 July 2007 Arlington Group Limited ("Arlington") Extended Seed Funding Transaction and divestment of certain shareholdings Arlington is pleased to announce that it has extended its initial seed fundinginto the Arlington Special Situations Fund Limited (ASSF/the Fund). ASSF is aCayman-incorporated open-ended investment fund seeking to achieve absolutereturns primarily through the capital appreciation of its investments. This isachieved by investing in a wide range of asset classes and instruments which mayinclude (but is not limited to) public and private equity, listed and unlisteddebt and trade finance. The FundManager is at all times given maximumflexibility in selecting both the specific investments and the strategies thatit sees fit in order to achieve these goals. Subject to certain performance parameters being sustained Arlington hascommitted US$19 million to the Fund until at least 31 March 2008 and hasnegotiated terms with the Fund Manager of ASSF which includes marketing rightsand fee sharing agreements which Arlington believes will enhance the overallreturns generated by this investment. Arlington is actively seeking other opportunities to make similar investments inaccordance with its previously stated investment strategy, the core of which isthe seed-funding of stand-alone funds which are capable of attracting third party capital while allowing Arlington to retain or obtain, either in whole orin part, a share of the management company economics; the implementation ofsuch strategy is intended to broaden and diversify the overall risk profile of the business. Contemporaneous with this commitment to ASSF, Arlington has divested a further26.5% of its equity interest in Arlington Group Asset Management Limited (AGAM)the London-based Fund Manager of ASSF. This further reduces Arlington'sinterest in AGAM from 46.5% to 20%, the stake thus divested having been acquiredat NAV by two of the Directors of AGAM thereby increasing their aggregateequity holding to 76.5%. holding of the management shares in AGAM. 26 July 2007 This information is provided by RNS The company news service from the London Stock Exchange