Sector developments and company hires

UKML shareholder consultation continues
The board of UK Mortgages (UKML) has completed the strategic review that it commenced following the withdrawal of proposals by M&G Investment Management (MAGIM) (SCI 14 August). The review has identified two potential options that will provide a clear path to the company’s objectives of enhanced liquidity, as well as a narrowing and removal of the discount at which UKML shares trade versus UKML’s NAV. The options are to either: continue operating as a publicly traded investment company under a revised mandate offering increased focus on enhancing liquidity and returns; or to proceed with an orderly wind-down of the company and returns of capital to its shareholders.

The board intends to embark on a further round of consultation with shareholders with a view to ascertaining their appetite for each of those two options. Following that consultation, it intends to make a firm recommendation and convene an EGM before year-end to vote on the proposals.

In other news…

Global
Latham & Watkins has promoted 33 associates to the partnership and another 33 to the role of counsel, effective from 1 January 2021. Among those promoted to counsel are Michael Hardy in Hong Kong and Brett Ackerman in Washington, DC. Both lawyers are members of the firm’s corporate department and their practices cover a range of structured finance and derivatives transactions.

Mid-market fund launched
BMO Financial Group has created a US middle market co-mingled private fund structure, specifically targeting European institutional investors. The BMO US Mid-Market Loan fund – which targets a yield of Libor plus 4.75% - offers the opportunity to invest in loans that are sourced, underwritten and managed by BMO. Every loan in the fund is matched on the BMO balance sheet, offering investors a co-investment opportunity with aligned incentives.

North America
NXT Capital chairman and ceo Robert Radway is set to retire towards the end of 2021, following more than 11 years of service at the firm and over 30 years in the industry. John Finnerty, head of the corporate finance group for NXT Capital, has been named president of the firm effective from 1 January 2021, at which time Radway will no longer serve as ceo, but will continue as chairman and member of the NXT Capital investment committees until his retirement. As part of this transition, NXT Capital’s real estate lending and investing activities - led by real estate group co-heads Craig Andreen and Kevin Rostowsky - will merge with NXT parent ORIX USA’s broader real estate lending and investing platform.