TIDMPOLN
RNS Number : 6968H
Pollen Street PLC
28 November 2022
FOR IMMEDIATE RELEASE
28 November 2022
Pollen Street plc Q3 trading update
Pollen Street plc ("Pollen Street" or "the Group") today issues
its trading update for the three months ended 30 September 2022
("Q3").
Lindsey McMurray, Chief Executive of Pollen Street commented:
"Pollen Street has continued to grow over Q3 with AuM under the
credit strategy increasing at a rate of 30% to 40% per annum over
the year to date. AuM for the Group closed the period at GBP3.3bn.
As we look ahead we are confident in a resilient outlook for our
newly combined entity and that we will continue to see growth in
line with guidance . "
Highlights
-- Pollen Street plc is a listed alternative asset manager
combining a fast-growing and purpose-led private capital investment
manager with complementary balance sheet activities focusing on
high quality, asset-backed senior secured lending
-- The Group was formed from the combination of Honeycomb
Investment Trust plc and Pollen Street Capital Holdings limited,
which completed on 30 September 2022
-- Headline AUM on an investor commitment basis was GBP3.3bn as
at 30 September 2022, growing in line with guidance previously
issued
-- Despite the uncertain macro-economic environment, Pollen
Street is well positioned for the opportunity to continue growing
and delivering returns for shareholders
Assets under management
Pollen Street increased AuM to GBP3.3bn as at 30 September 2022,
on an investor commitment basis(1) . The growth is driven by
capital raising under the credit strategy, with AuM for credit
growing at a rate of 30% to 40% per annum, in line with technical
guidance issued for 2022 . T he Private Equity business has not
been in active fundraising in 2022 whilst Flagship PE IV is
deployed, but progress continues towards the launch of Flagship PE
V in 2023. The momentum in deployment has continued with the
average fee-paying AUM(2) over the first 9 months increasing to
GBP2.2bn.
(1) AuM on an investor commitment basis calculated as investor
commitments for active private equity funds, invested cost for
other private equity funds, total assets for the on-balance sheet
assets and investor commitments for private credit funds
(2) Average Fee Paying AuM is calculated as the average of the
opening and closing investor commitments for active fee-paying
private equity funds, invested cost for other fee-paying private
equity funds, total assets for the on-balance sheet assets and net
invested amount for fee-paying private credit funds
Investment asset performance
The balance sheet asset portfolio has continued its performance
in line with historic trends:
- Pollen Street plc delivered a return on Net Investment Assets
(3) of 2.0% for the quarter which is equivalent to 7.8% per
annum
- The asset portfolio is performing well with risk-adjusted
yield of 9.5% per annum, reflecting the benefit of the senior
secured strategy
- The portfolio is well positioned for interest rate rises with
the investment portfolio benefiting from more floating-rate assets
than floating-rate liabilities
(3) Net Investment Assets is calculated as investment assets on
the balance sheet plus surplus cash, net of debt
Well-positioned for the macro-economic environment
We recognise the challenging environment, however our strategies
are well-positioned and have demonstrated strength and resilience
in periods of significant change. We are steadily building investor
relationships and AuM across the asset management business in line
with our medium-term guidance and our balance sheet assets are well
positioned to withstand significant macro stress. The uncertain
environment is also presenting opportunities with higher returns at
prudent loan to value ("LTV") ratios.
About Pollen Street plc
Pollen Street plc is an asset management company that benefits
from a complementary set of investment management activities and
balance sheet activities.
Pollen Street was founded in 2013 and is an independent,
alternative investment management company dedicated to investing in
the financial and business services sectors. Pollen Street has
extensive experience investing in both credit and private equity
strategies and has a strong and consistent track record of
delivering top-tier returns.
The on-balance sheet investment portfolio invests in
high-quality, diversified and low-risk asset-based direct lending
investments, with potential to generate high-income returns,
together with strong capital preservation.
POLN is listed on the London Stock Exchange (ticker symbol:
POLN). Further details are available at www.pollencap.com .
For further information about this announcement please
contact:
FGS Global
Chris Sibbald
Chris.Sibbald@fgsglobal.com
+44 (0)7855955531
Link Company Matters Limited - Corporate Secretary
polncosec@linkgroup.co.uk
Liberum Capital Limited - Joint Broker
Chris Clarke / Edward Mansfield
+44 (0)20 3100 2000
Barclays Bank plc - Joint Broker
Neal West / Dion Di Miceli / Chris Madderson / Stuart Muress
+44 (0) 20 7623 2323
Cenkos Securities plc - Joint Broker - should this be
removed
Justin Zawoda-Martin
+44 (0) 20 7397 8900
ENDS
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