SQN Asset Finance Income Fund Limited
The Company was incorporated and registered in Guernsey on 28 May 2014 with registered number 58519. The principal legislation under which the Company operates, and under which its securities have been created (and under which the Ordinary Shares will be created), is the Companies Law.
The Company raised Gross Issue Proceeds of £150 million by way of the Initial Placing and Offer which comprised an offer by the Company of 150 million Ordinary Shares at the Initial Placing and Offer Price, being 100 pence per Ordinary Share. Subsequent offerings of £30 million in July 2015 and £180 million in November 2015 mean that the Fund has issued capital of £360 million and a market capitalization of ~£385 million.
Market opportunity – the global leasing market of$868 billion*in 2012 continues to grow into the global economic recovery with particular strength in the U.K. with nearly 24 per cent.* of all capital equipment acquisitions financed through equipment leases. At the same time, traditional participants in the market have retreated from the historically under-served segment between large ticket asset finance and high volume/low margin equipment leasing in which the Company will focus.
Highly cash generative – the nature of lease and asset financing provides regular, predictable, non-correlated cashflows, which provides income for dividends, and principal payments for reinvestment to compound returns.
Asset security – the Company’s portfolio will generally benefit from either direct ownership or security over the underlying assets.
Attractive target returns – the Company targets a dividend of 7.25 pence per annum which is expected to grow over time and a total net return to investors of 8 to 10 per cent. per annum.
Monthly income – the Company pays monthly dividends.
Highly experienced management team – the team responsible for the management of the Company has over 50 years of combined experience in asset finance and equipment lease investment and has been working together for over 15 years.
*Source: 2014 White Clarke Global Leasing Report