Tue, Apr 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Emco launches alternative fund investing in late night licensed venues

Monday, November 26, 2012
Opalesque Industry Update - EMCO Capital Advisers is launching a Cayman registered alternative investment fund focused on investment in late night licensed venues in the UK. The Fund is aiming for exceptional returns to investors over a rolling two-year cycle.

EMCO Alternative Property Fund has been structured to achieve principally capital growth and some additional return from income via a portfolio of freehold entertainment venues in three ways:

1) Capital growth arising from the relicensing of premises whose license has been lost or withdrawn

2) Income arising from the granting of operating leases to EMCO Leisure Ltd (the Venue Operator) which will operate the venues

3) Capital growth arising from attaining ‘change of use’ permissions on premises, for example planning permission for conversion to residential property. This third element also provides investors with a key risk management function in the event that having an entertainment venue is not attractive to a potential purchaser

4) Unless there are exceptional circumstances, each venue within the portfolio will be sold, either by private contract, or via trade sale or other means towards the end of the a two-year period

The Fund’s trading advisers are concentrating on building the investment portfolio from premises usually outside London which, after substantial due diligence and financial modelling are found to share the following characteristics:

  • Freehold
  • Frequently distressed – for example in want of refurbishment, running at a loss, having no operating license – and thus buyable at a substantial discount to book value
  • Likely to benefit from significant and immediate capital value increase on granting of an operating license
  • Likely to benefit from significant and immediate capital value increase on granting of change of use permission
  • Capable of generating useful income as a venue based on Adviser’s proprietary analytical model and considerable experience of running entertainment venues
  • Susceptible to longer-term capital value increase arising from the operation of a successful and popular entertainment venue

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its