17 May 2009
LG acts on a hat-trick of innovative investment fund restructurings
The Investment Funds team at international business law firm Lawrence Graham LLP (LG) has recently advised three AIM quoted funds – Pacific Alliance Asia Opportunity Fund Limited, Pacific Alliance China Land Limited and Africa Opportunity Fund Limited – in connection with innovative restructuring schemes.
The team advised Pacific Alliance Asia Opportunity Fund Limited on its recent tender offer and restructuring which reorganised the fund into a new quoted feeder fund for the Pacific Alliance Asia Opportunity Fund L.P. through the combination of the investment portfolios of the two vehicles, increasing the size of Pacific Alliance Asia Opportunity Fund L.P. to approximately $1.25 billion. The restructuring also allowed eligible investors to swap their holding in Pacific Alliance Asia Opportunity Fund Limited for interests in a new unquoted open-ended feeder vehicle again investing into Pacific Alliance Asia Opportunity Fund L.P.
The team also advised Pacific Alliance China Land Limited on a share capital reconstruction by way of a tender offer. The reconstruction allowed shareholders to exchange shares for new shares in an unlisted private realisation vehicle that will distribute proceeds from exited investments. The new vehicle allows exiting shareholders to continue to hold an interest in the company’s portfolio without the mark-to-market volatility of a quoted security.
Finally, the team advised Africa Opportunity Fund Limited on its recent tender offer. A new structure was put in place to allow shareholders who required liquidity to exit on a realisation basis.
The LG team advising on the restructurings included corporate finance partners Nick Heather and John Reed with assistance from corporate associate Kristian Rogers.
Nick Heather said: “We are delighted to have helped our existing clients deliver these innovative schemes which, in these difficult markets, will satisfy the varying needs of different investors and position our clients to take advantage of any future market upswings.”