Hogan Lovells advises Revolution Asset Management on the establishment of a A$40,000,000 subscription finance facility
2 November 2020 –International law firm, Hogan Lovells, has advised Revolution Asset Management (Revolution) on the establishment of a A$40,000,000 subscription finance facility for Revolution Private Debt Fund II (‘Fund II’) with National Australia Bank.
Revolution was founded in February 2018 with the vision of providing investors with greater access to private debt. The investment team brought their combined 60 plus years’ experience in credit analysis and structuring of private debt opportunities to create a niche investment strategy focused on delivering a target return of the RBA cash rate plus 4% to 5% p.a. (gross of fees and expenses) by providing investors with access to corporate leveraged loans, private asset-backed securities and senior real estate loans in Australia and New Zealand. Revolution was recently awarded Best Emerging Manager at the 2020 Hedge Funds Rock + The Australia Alternative Investment Awards.
Revolution Private Debt Fund II achieved its first close in December 2019, and successfully provided flexibility on its investment structure to create a wholesale offering through an open-ended fund with limited liquidity. In August 2020, Revolution surpassed the A$500 million mark in deployed capital. Channel Capital is the trustee for Revolution Private Debt Fund II.
The Hogan Lovells team was led by Corporate & Finance partner Bryan Paisley, with support from partner James Wood (investment funds), senior associates Lisa Mazor and Aisling Lynch and associate Zac Forrai.
Commenting on the deal, Bryan Paisley said : "Our cross-disciplinary team reflecting our finance and investment funds capabilities are delighted to have assisted Revolution on this financing to support a very successful fund. The facility will allow Revolution to manage the Fund more efficiently and enhance returns for investors."
Bob Sahota, Chief Investment Officer and Founder of Revolution commented: "It was great working with Hogan Lovells and NAB in getting this most important financing facility in place for Fund II, particularly in the midst of COVID-19."
Minter Ellison acted on behalf of National Australia Bank.