SQN has redeemed £40m (€45.8) in shares in its asset finance income fund, following slower than expected deployment of capital.

The amount returned to shareholders is equivalent to around 22% of the £180m raised through C shares in December 2016.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Earlier this month, the fund’s board of directors said “the speed of deployment [had] been slower than anticipated” for the C share capital, and agreed to return the excess capital of £40m, which includes around £400,000 in management fees.

It said £66m in C share capital had been already invested, a further £20m were expected to be invested by May, and a “significant proportion” of the oustanding £36m would be funded by the end of June.

The fund experienced challenges over the last twelve months, as two of its lessees fell into repayment difficulties.

In November, modular accommodation provider Snoozebox went into administration with £8.2m outstanding to SQN. Snoozebox has been subsequently sold to a new owner, and SQN said earlier this month it expected full repayment of debt over ten years, under a new lease agreement.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In the US, SQN lessee Suniva has benefitted from the Trump administration’s enacting of tariffs aimed at sustaining solar panel prices. SQN, which last year said it faced a $29.9m (€25.8m, £22.5m) loss if Suniva went into bankruptcy, took a leading role in bringing the case for tariffs to the White House.

Earlier this month, the fund said it was looking to acquire ownership of Suniva’s asset and subsequently enter a sale, joint venture or merger with a third party.

“Negotiations are ongoing with multiple credible parties in parallel,” the company said.

“The investment managers are working towards providing clarity over the outcome of any transaction regarding the Suniva holding and are making every effort to achieve this in as short a time scale as possible, however, the timetable is not certain.”