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10 April 2013
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Ogier recently acted for Onexim Holdings Limited (Onexim), a private investment fund on a corporate finance transaction valued at US$3.6 billion involving the disposal by Onexim of its 38% stake in Polyus Gold International Limited (Polyus Gold). Polyus Gold is a Jersey company listed on the main market of the London Stock Exchange and is the largest gold producer in Russia.
Onexim is one of the world's largest private investment funds and is associated with Mr Mikhail Prokhorov (who is included in Forbes' Billionaires list and is the owner, amongst other things, of the Brooklyn Nets NBA basketball team). Mr Prokhorov and Onexim participated in the development of Polyus Gold for several years which became one of Onexim's major assets.
Ogier provided Jersey legal advice led by partner Michael Lombardi with senior associate Richard Daggett. Michael commented "We were pleased that Ogier was selected to act in relation to such a high value transaction involving one of the major gold producers."
In another recent transaction Ogier acted for Intermediate Capital Group (ICG) on the set up of a flagship mezzanine and senior equity fund which achieved a fund size of €2.5 billion and closed three months ahead of deadline. ICG is a specialist investment firm and asset manager listed on the London Stock Exchange which provides mezzanine finance, leveraged credit and partnership equity and manages over €13 billion of assets of its own capital and third party funds. The Ogier team on this transaction was also led by partner Michael Lombardi, assisted by managing associate Niamh Lalor and associate, Alexandra Rayner.
Ogier provided Jersey legal and regulatory advice on the fund structuring and set up. Michael Lombardi commented: "Despite an extremely challenging fund raising environment, ICG was highly successful in fund raising for its fifth fund and we believe that this was the largest capital raising by a Jersey fund in the last 12 months. ICG is the market leader in its sector and it is a gold star for the Island's finance industry that ICG chose to domicile its flagship mezzanine fund in Jersey. This was a highly complex structure involving over a dozen component vehicles and the fund will provide mezzanine finance to MBO's and buy-out funds in sponsored and sponsorless deals as well as restructuring transactions through a combination of subordinated debt and equity instruments."
Investment and market conditions for specialist mezzanine funds are extremely attractive at present as across Europe traditional providers of finance, such as banks, are increasingly becoming capital constrained. This has resulted in significant imbalances between supply and demand for finance creating the opportunity for the fund to secure attractive risk-adjusted returns by investing in a broad spectrum of mid market European businesses. The fund has a diversified investor base including: sovereign wealth funds (37%), pension funds (32%) and insurance companies (11%), all of which recognise the current opportunity to secure attractive yields and risk-adjusted returns. ICG's long-term track record and investment thesis attracted a broad geographical base of support including 39% of investors from Asia, 31% from Europe and Middle East and 30% from North America.
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