TwentyFour Income Fund (TFIF) is a premium listed investment fund with net assets of over £550m. It focusses on less liquid, higher yielding asset backed securities, investing in a diversified portfolio of UK and European asset backed securities. UK Mortgages Limited (UKML) is an investment fund, investing in a diversified portfolio of good quality UK residential mortgages. It is listed on the Specialist Fund Market with net assets of c£150m. Both companies are managed by the same manager – TwentyFour Asset Management.
The transaction will see TFIF benefitting from a strengthened market position due to greater scale and combined asset management and securitisation expertise. The enlarged company will have net assets of c£715m.
The combination is being effected by way of a scheme of reconstruction of UKML.
TFIF published a prospectus in connection with the transaction which also contained a placing programme to raise £150m over a 12-month period.
The BDO team acted as sponsor to TFIF in connection with the publication of the prospectus and issue of new shares.