INSIGHTS

Carey Olsen advises Pearl Diver Capital on US$500 million fund

Lawyers from Carey Olsen’s Guernsey corporate team have recently advised Pearl Diver Capital on the establishment of three registered, closed-ended funds.
Collectively known as PDC Opportunities Fund VII, the funds are targeting commitments of US$500 million to invest in a diversified portfolio of tranches of collateralised loan obligations (CLOs) issued by European and American companies.
The funds are structured as Guernsey limited partnerships, the first of which, PDC Opportunities Fund VII A Limited Partnership (Fund VII), held a successful first closing at 13 April 2017.
The Carey Olsen team advising on the launch of the funds was led by partner Ben Morgan, who is also head of the firm’s corporate and finance group in Guernsey, assisted by senior associate Vicky La. They advised on the Guernsey aspects of the funds’ establishment, working alongside international law firm Ashurst in London and New York.
Advocate Morgan said: “Carey Olsen has built a very strong track record for advising fund managers targeting debt investments over recent years, and this experience has proved invaluable to our work on this deal.”
BNP Paribas Securities Services S.C.A. in Guernsey is the administrator of the existing Pearl Diver Capital fund range and has been appointed as administrators of the Fund VII entities.

Katy Hodgetts, head of relationship management C.I., said: “Having recently migrated Pearl Diver Capital’s existing funds onto our platform we are delighted to have been appointed as administrator to Fund VII. These new funds further build upon BNP Paribas’ very strong credentials as a leading administrator of debt funds.”

Pearl Diver Capital is a boutique asset manager, regulated and authorised by the FCA. It specialises in securitised products, offering institutional investors access to US and global corporate credit in a structured format through investments in CLO tranches.
Neil Basu, founder, managing partner and CEO at the firm, said: “Pearl Diver will continue to maintain a ‘pure-play’ focus on CLO Equity and CLO Mezzanine space with an objective of adding alpha through active involvement in refinancing, resets and repacks, and in provision of risk retention capital as well as through warehousing and support of primary control CLO Equity investments in new CLOs.”

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