City of London Group plc _COLG or the Company_

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					                                              LSE: CIN

                                                                                         3 May 2011


         City of London Group plc (“COLG” or “the Company”)


CAML and Novitas Announcements

Following the completion of its Placing and Open Offer, City of London Group plc (“COLG”) is pleased
to announce that its agreement to invest in Credit Asset Management Limited (“CAML”) has become
unconditional and that, accordingly, the CAML joint venture will become effective immediately.

CAML is targeting short and long term professional practice lending and asset backed lending to the
SME sector. It is led by Michael Hughes and James Frost who were responsible for developing
Universal Leasing Limited, a successful SME and professional services leasing business. Chris
Boobyer, its Chairman, has over 30 years experience in financial services, including senior positions
with Barclays Asset Finance.

COLG will own 51% of CAML and will be funding CAML’s running costs through a three year working
capital loan of £750,000 at an interest rate of 4.67 per cent per annum. It will invest up to the
maximum permitted under its investment policy in seed equity for CAML, alongside which CAML
expects to agree bank borrowings to support the growth in its book. The intention is to attract further
equity from external sources in the future. CAML will also be seeking equity management mandates
targeting the same sector from which it will aim to earn management and performance fees.

COLG is also pleased to announce that it has entered into an agreement through which its subsidiary,
City of London Law Funding Limited (“COLLF”), will lend up to £500,000 to Novitas Futures Limited
(“Novitas Futures”). Novitas Futures is a 50% owned start up joint venture with Jason Reeve, the
owner of Novitas Investments Limited, an independent financial adviser targeting the High Net Worth
(“HNW”) sector and it will concentrate on offering secured loans to HNW clients who are undertaking
litigation. Novitas Futures has been developed in conjunction with the principals of Therium Capital
Management Limited (“Therium”), COLG’s litigation funding business, who will also source new
business for the venture. Following the transaction COLG’s effective shareholding in COLLF will be
68%.

Eric Anstee, CEO of COLG, commented:

“I am delighted that we have been able to attract such an experienced team, with an enviable track
record, to CAML. Combined with our trade finance business, this provides us with a strong delivery
capability for lending into the SME market as an alternative to the major banking groups. The further
advance into the litigation and law funding sector through Novitas Futures means that we are able to
announce today two developments which will provide significant steps forward for our overall
business model and Specialist Finance Strategy”
3rd May 2011
For further information please contact:

City of London Group Plc                  Tel: +44 (0) 20 7628 5518

Eric Anstee, Chief Executive Officer

John Kent, Executive Director

Singer Capital Markets Limited            Tel: +44 (0)20 3205 7500

Jeff Keating

Jonathan Marren

College Hill (Financial PR and
                                          Tel: +44 (0)20 7457 2020
Communications)

Roddy Watt

Tony Friend

				
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posted:9/24/2011
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