SVG Capital (formerly Schroder Ventures Group), which operates a fund-of-funds business, is currently in the midst of book building for its €260m Collateralised Fund Obligation (CFO), called SVG Diamond Private Equity plc, which will be listed on the London Stock Exchange. More details are expected late August but it is understood from ratings agency Moody’s that the CFO will invest both in diversified secondary private equity positions as well as primaries.
Moody’s has assigned the paper the following provisional ratings;
Aaa to the Class A-1 floating rate notes due 2026
Aaa to the Class A-2 floating rate notes due 2026
Aa2 to the Class B-1 floating rate notes due 2026
Aa2 to the Class B-2 floating rate notes due 2026
A2 to the Class C-1 floating rate notes due 2026
A2 to the Class C-2 floating rate notes due 2026
Baa2 to the Class M-1 fixed rate notes due 2026
Baa2 to the Class M-2 fixed rate notes due 2026
Depending on the performance of the underlying fund positions, it is anticipated that the CFO will have commitment capacity of some €400m. This includes the €260m rated notes, as listed above, plus €140m of unrated preference shares. There will also be a €100m liquidity facility.