April 2007
Permanent capital vehicles: Permanent feature or fad?
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"The objective is to preserve capital and to deliver stable, predictable resilient income. The value proposition of Volta is about taking advantage of what is going on in the structured finance market"
Pierre-Emmanuel Juillard, Axa |
Ever since the launch in December 2005 of Queen’s Walk, managed by Cheyne Capital, which raised €225 million, the hype behind closed fund structures has been tempered by concerns about possible drawbacks.
Permanent capital vehicles are a mix of CDO and fund management approaches. Importantly they have attracted investors that have traditionally been less comfortable with structured finance as an asset class. The last deal to launch – Volta, which is managed by Axa IM – was the biggest so far. Lead managers Citigroup and Goldman Sachs raised €300 million.
"It’s a diversified permanent capital vehicle – and as far as we know it’s the first of its kind. The objective is to...
