Tetragon Financial
Group Limited ("TFG") Monthly Update For July 2016
LONDON, Aug. 25, 2016 -- TFG is a Guernsey
closed-ended company traded on Euronext Amsterdam N.V. under the
ticker symbol "TFG.NA" and on the Specialist Fund Segment of the
London Stock Exchange plc under the symbol "TFG.LN".
In this monthly update, unless otherwise stated, we report on
the consolidated business incorporating TFG and Tetragon Financial
Group Master Fund Limited.(1)
Net Asset Value Estimates (Fair Value basis) as of
31 July 2016
(Amounts provided are unaudited and subject to change)
|
|
(in millions except per share data) |
Estimated Fair Value of Investments:
(2) |
|
$1,480.1 |
Cash and Cash Equivalents: (2) |
|
$404.1 |
Net Other Assets / (Liabilities):
(2) |
|
$34.2 |
Estimated Fair Value Net Asset Value
(2) |
|
$1,918.5 |
TFG Legal Shares Issued and Outstanding: |
|
139.1 |
Pro forma fully diluted share count:
(3) |
|
95.6 |
Fully Diluted Fair Value Net Asset Value per
Share: (4)(5) |
|
$20.06 |
Investment Composition:
As of the end of July 2016, the
company's investment portfolio comprised a broad range of assets,
including a diversified alternative asset management business, TFG
Asset Management, and covered bank loans (including equity tranches
of U.S. and European CLOs, U.S. CLO mezzanine tranches and U.S.
senior secured loans), real estate, equities, credit, convertible
bonds and infrastructure, as well as cash. Derivative
mark-to-market gains and losses are contained within net other
assets or liabilities.
(1) |
TFG invests substantially all its capital through
a master fund, Tetragon Financial Group Master Fund Limited
("TFGMF") in which it holds a 100% share. |
(2) |
Fair Value Net Assets are determined by adjusting
the U.S. GAAP Net Asset Value ($1,811.6 million) to give effect to
the de-consolidation of certain TFG Asset Management businesses
that are currently consolidated under U.S. GAAP (-$33.6 million),
and the inclusion of their fair values ($166.9 million). The fair
values used are as determined by TFG's Audit Committee based on
information provided by an independent valuation specialist. The
Fair Value Net Assets are also adjusted to reflect imputed
incentive fees (-$26.5 million) that would otherwise have arisen if
these Fair Values were actually reflected in the U.S. GAAP
accounting for TFG's financial statements, all subject to
rounding. |
(3) |
Calculation is with reference to U.S. GAAP Shares
outstanding (approximately 87.5 million), which is determined by
reducing TFG legal shares issued and outstanding by approximately
12.0 million shares held in treasury, 27.0 million shares held by a
subsidiary and 12.7 million shares held in aggregate in escrow
accounts, all subject to rounding. Pro Forma Fully Diluted Shares
adjusts the U.S. GAAP shares outstanding (87.5 million) for the
impact of certain escrow shares used as consideration in the
Polygon transaction and associated stock dividends (together, 6.8
million), equity-based awards (0.5 million) and for the potential
impact of share options issued (0.9 million). These options
represent the intrinsic value of shares available for the GreenOak
founders as at the end of July 2016 (0.9 million) plus potential
impact of options issued to TFG's Investment Manager at the time of
TFG's IPO (0.0 million), all subject to rounding. |
(4) |
Calculation is with reference to Fair Value Net
Assets ($1,918.5 million) divided by Pro Forma Fully Diluted Shares
outstanding (approximately 95.6 million), all subject to
rounding. |
(5) |
The NAV per Share calculation is after accruing
for the dividend relating to Q2 2016. Any adjustments to net
assets or shares resulting from the optional stock dividend program
will be reflected next month upon the issuance of the applicable
shares. |
Investment Composition (continued):
The geographical allocation of TFG's investments was determined to
be 50.2% U.S., 9.6% Europe and
3.4% Asia at month-end.
Investments in certain hedge funds and other investment vehicles
which have underlying investments that span more than one
geographic region are considered to be "global" and represent
36.8%. Interests in asset management businesses have been excluded
from this calculation.
Calendar:
See the TFG website for the latest calendar -
http://www.tetragoninv.com/investor/calendar.aspx
About Tetragon:
Tetragon Financial Group Limited ("TFG") is a Guernsey closed-ended
company traded on Euronext Amsterdam N.V. under the ticker symbol
"TFG.NA" and on the Specialist Fund Segment of the London Stock
Exchange plc under the symbol "TFG.LN". TFG aims to provide stable
returns to investors across various credit, equity, interest rate,
inflation and real estate cycles. TFG's investment portfolio
comprises a broad range of assets, including an asset-management
business (TFG Asset Management), and covers bank loans, real
estate, equities, credit, convertible bonds and infrastructure.
For further information, please
contact: |
|
|
TFG: |
Press Inquiries: Please contact Prosek
Partners: |
David Wishnow/Greg Wadsworth |
Andy Merrill and Ryan FitzGibbon |
Investor Relations |
Tel: +1 212 279 3115 ext. 216 and ext. 234 |
ir@tetragoninv.com |
Email: Pro-tetragon@prosek.com |
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This release
contains inside information within the meaning of Article 7(1) of
the EU Market Abuse Regulation.
This release does not contain or constitute an offer to sell or
a solicitation of an offer to purchase securities in the United States or any other jurisdiction.
The securities of TFG have not been and will not be registered
under the US Securities Act of 1933 (the "Securities Act"), as
amended, and may not be offered or sold in the United States or to US persons unless they
are registered under applicable law or exempt from
registration. TFG does not intend to register any portion of
its securities in the United
States or to conduct a public offer of securities in the
United States. In addition, TFG has not been and will not be
registered under the US Investment Company Act of 1940, and
investors will not be entitled to the benefits of such
Act. TFG is registered in the public register of the
Netherlands Authority for the Financial Markets under Section 1:107
of the Financial Markets Supervision Act ("FMSA") as a collective
investment scheme from a designated country.