Please carefully review the following information and respond to the questions below.
The information on this page is not available to any person who is a “U.S. person” (as defined below) or to any person who is physically present in the United States, and it is available only to persons who are “relevant persons” (as defined below) for U.K. regulatory purposes.
A “U.S. person” is:
any natural person resident in the United States;
any partnership or corporation organized or incorporated under the laws of the United States;
any estate of which any executor or administrator is a U.S. person;
any trust of which any trustee is a U.S. person;
any agency or branch of a foreign entity located in the United States;
any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;
any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and
any partnership or corporation if:
organised or incorporated under the laws of any foreign jurisdiction; and
formed by a U.S. person principally for the purpose of investing in securities not registered under the U.S. Securities Act, unless it is organised or incorporated, and owned, by accredited investors (as defined in the rules of the U.S. Securities and Exchange Commission) who are not natural persons, estates or trusts.
“Relevant persons” are (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order. The securities of the Company are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not access, or seek to act or rely on, this website: or any of its contents.
In our 5 May 2021 note, Re-Set, Re-Fi, Re-Light my Fire, we explored how favourable market conditions mean that CLO vehicles can re-finance debt cheaply, enhancing the value of Volta’s equity positions (which have been increased substantially in recent years). We showed the impact on Volta’s CLO debt portfolio, and what this meant for new investment returns. The key message is that the favourable conditions are expected to lift returns by 1%-1.5% p.a. for several years. Volta is also benefiting from the unexpectedly low levels of defaults. Despite this favourable outlook, Volta still trades at a 16% discount to NAV, albeit down from March 2020 highs.
If you'd like to be introduced to the team at Volta Finance, get in touch.Request a meeting