08. June 2020
KKV Investment Management Ltd., a subsidiary of Kvika Securities Ltd, the UK operational subsidiary of Kvika Banki, has finalised Investment Management Agreements with two British secured loan funds. The two funds‘ Net Asset Value is in excess of £425 million, equivalent to c. 70 billion Icelandic krona.
Last April, it was announced that KKV had signed Heads of Terms with the Board of SQN Asset Finance Income Fund, with KKV expected to formally take over management of the fund in early June. An Investment Management Agreement to that effect has now been finalised and signed and the fund will be renamed as KKV Secured Loan Fund. The fund‘s shares remain listed on the London Stock Exchange main market.
Additionally, KKV has assumed the role of Investment Manager of the SQN Secured Income Fund, with Net Asset value of over £45 million, equivalent to c. 8 billion Icelandic krona. The fund‘s shares are also listed on the London Stock Exchange.
As part of the commencement of investment management services to the two funds, KKV will hire c.18 professionals, most of whom have been involved with managing the two funds in recent years.
Ken Hillen, an experienced banking professional with a career spanning 40 years in the UK financial sector, has been appointed Executive Chairman of KKV, while Dawn Kendall has been appointed Chief Investment Officer. For further information please visit kkvim.com.
As KKV is expected to incur various one-off costs due to the two mandates, including staff hires and payments to the previous manager, the impact of the funds on profit from its London operation in 2020 is expected to be minimal.
Gunnar Sigurdsson, Managing Director, Kvika Securities Ltd.:
„We are delighted to have finalised these agreements and remain excited about the many opportunities faced by KKV. We are taking over an experienced team of staff that has managed the two funds in recent years, and reinforcing it with key hires of experienced and skilled professionals.“
Marino Orn Tryggvason, CEO of Kvika banki hf.:
,,Kvika launched operations in the UK in early 2017. We have seen many successes to date, with our UK subsidiary delivering a profit in the latest fiscal year. We are, therefore, particularly pleased to see KKV secure mandates to manage two listed UK funds, which is an important step in our development in the UK whilst aligning well with Kvika´s strategic focus on asset- and fund management.“
For further information, please contact Gunnar Sigurðsson, Managing Director, Kvika Securities Ltd., tel. +44 691 9366, email@example.com
Further information can also be found in the RNS notifications published by the Boards of the SQN Asset Finance Income Fund and the SQN Secured Income Fund on the London Stock Exchange earlier this morning: