Chenavari Capital Soluti... Share Discussion Threads

[horndean eagle] 24/7/2015 08:45

Should help assuage some of the fears on the Portuguese assets

The Company made a primary investment in an Italian SME first-loss transaction in June. The transaction is a “follow-on”
deal to a transaction that the Company invested in in late 2014. The static granular portfolio results in a structure that
deleverages quickly which reduces risk as time goes on. The NAV of the Company increased by 2.25% to GBp100.33
(net of accrued, liabilities, fee and expenses), driven by the strong carry of the portfolio, and a positive mark-to-market on
the Portuguese investment resulting from a market bid in this name.

Thats from June statement.

[rambutan2] 23/7/2015 14:51

They recently listed their more renowned fund, TORO...

[horndean eagle] 22/7/2015 18:20

Its heavily amortising which will reduce their exposure naturally. Would have been marked down further if more issues had arisen with it. Chenavari have a very good track record so you would hope they know what they are doing.

[skyship] 22/7/2015 12:11

Still too worried about their investments in Portugal.

[horndean eagle] 22/7/2015 11:22

See NAV up to over 100.3p at end June. Surprised not much interest of late. 2p dividends for the next 2 quarters and then they are into run off mode. New investment cut off is year end and after that they return any cash as and when. If they are still targeting 8-10% returns then would have expected more interest.

[jonwig] 27/5/2015 07:24

Revised dividend policy:



They seem to admit that their previous policy was unsustainable, having been met by using capital as well as income.

So now it's 2p for the next two quarters, with no capital element and - I suspect - below that thereafter.

[skyship] 25/4/2015 13:46

Stemis - yes, also hold LBOW. Have SQN on my Monitor, though likely to delete as won't be buying!

[stemis] 23/4/2015 10:13

I did hold RECP but sold at 108.85p for the reasons you outline. Recently I've been a buyer of ICG Longbox, which reported today. Yield is only 5.7% (payable quarterly) but it's fully listed and bid offer is reasonable so I'm parking some cash there. It's making about 8% return (relative to share price) so should see NAV creep upwards as well. 8% return would be fine. Also looking at SQN but less happy about underlying portfolio.

[skyship] 22/4/2015 16:34

"I either find better yields (hard) or lower yields (5%) that will grow."

It is increasingly difficult to fulfil those requirements.

My banker remains RECP - 106p-107.5p - At the offer price of 107.5p the current yield = 7.44%, but the GRY is now at only 4.57%. Won't sell as at the bid price the GRY is still a (barely) acceptable 5.18%.

Having to continue fishing in the NAV discount waters of PE Trusts & propcos.

For the first time since 2001 I have lowered my target expectations from 12%pa to 7%pa. Currently at +3.8%; but that is after the usual strong Q1; and with so many uncertainties out there I will still be happy to achieve 7% this year.

[stemis] 22/4/2015 11:25

No I'm still in Carador although it was (unfortunately) always a small holding for me. Unfortunately because, just checking, I'm up including dividends 56% in 3.25 years. It's still yielding over 10%.

My main problem looking ahead is that a lot of the fixed interest related stuff I've held in this area over the last 5 years has gone up and is now yielding less than my target return (7.5%). I either find better yields (hard) or lower yields (5%) that will grow.

[jonwig] 22/4/2015 10:54

Part of the issue with the CCSL /bank involvement is risk of regulation - the EU regulators have mentioned restricting capital transactions. For me it's a difficult world to understand, or get close to.

Ranger - I think ultimately the security of loans will be down to property assets, either owned by companies or given as security by company owners. And if loans are at variable rates, this can put extra strain on the borrowers. US into recession?

So I'll pass it by for the present, but keep an eye open. As with Carador Income Fund, there was a strong buying opportunity following the GFC. (I'm out of that, suppose you too?)

[stemis] 22/4/2015 10:10

I think quarterly dividend is 1.35p. They're not really in European banks though are they. They buy off European banks but the loans are with others.

Yes, I've seen the Ranger Fund launch. What do you think?

Here's the prospectus if anyone's reading and doesn't have it

[jonwig] 22/4/2015 07:23

I think it is now (fully invested): £40m cash at 31/09/14, followed by about £44m new investment since, no realisations mentioned.

Latest quarterly dividend 1.2p. European banks the place to be right now?

Maybe Ranger Direct Lending Fund [RDL] due to launch soon: 10% yield projection. Or maybe not!

[stemis] 21/4/2015 20:39

Well it hasn't been fully invested over the period so a bit soon to say

[jonwig] 21/4/2015 12:33

SteMiS - a far cry, then, from the target in the prospectus (see header).

I haven't updated myself here for some time - maybe not fully invested, maybe strategy change? But far too risky for such a low yield, imo.

[stemis] 21/4/2015 09:43

Seems to be paying 1.35p per quarter = 5.4p pa = 5.3%

Annualised return since inception is 5.35% although for much of the period it was not fully invested.

[skyship] 20/2/2015 12:48

Looks like a good new investment - but still holding off because of those Portugese assets!

[skyship] 01/2/2015 12:32

Concerned at one of the stats in that annual Report - 27% of NAV comprises SME loans in Portugal - perhaps not such a good idea.

See the last few paras of this article:



CCSL has been on my Watch-list for quite sometime. But though the NAV premium has been unravelling; it may well be with good reason!

[jonwig] 13/12/2014 09:58

Thanks for pointing that out - CCSL has been off my radar for a while.

But what banks have too much sub-investment grade O&G debt on their books? Russian bonds? Greek bonds?

Far too risky for me, now, especially when I haven't the information to measure the risks.

[skyship] 13/12/2014 09:41

Quite interesting the last two RNSs - see Header.

Will await with interest likely news on a placing; then assess whether the time has arrived to be back in here...

[speedsgh] 24/9/2014 10:25

thanks for the replies, guys.

[skyship] 24/9/2014 08:48

FWIW - I also sold out for the same reason. With the NAV just south of 98p IMO they look rather over-valued for the time-being...

[jonwig] 24/9/2014 07:48

speedsgh - sorry, I've only just seen your query.

The prospectus (Oct 2013) suggested a first year dividend of 5p and for it to be fully invested after 12 months with a target return of 12% which will mostly be paid out as dividends.

In fact they paid 4p in August and were 67% invested at that point; one new investment since then. Whether they'll reach a 10p dividend in the current year I don't know.

FWIW, I sold out at the end of July for 109p (cum div) so didn't collect. No particular animus against CCSL, but have withdrawn a lot of money from the market, and that was at the riskier end of my holdings.

[speedsgh] 22/9/2014 10:56

Can anyone give me a pointer as to the forecast dividend for the new FY which commences 1/10/14? TIA

[wirralowl] 02/9/2014 13:55

Oops! Thanks scottie! Hadn't seen the replacement IMS, was going by the earlier RNS below, but you are correct:

RNS Number : 7786M

Chenavari Capital Solutions Limited

18 July 2014

18 July 2014

CHENAVARI CAPITAL SOLUTIONS LIMITED (COMPANY)

CHENAVARI DECLARES DIVIDEND FOR PERIOD ENDED 30 JUNE 2014

The Company is pleased to announce the payment of a dividend in the amount of 4.0 pence per share for the period ended 30 June 2014.

The dividend will have a record date of 1 August 2014 and will be paid on 15 August 2014.