Navigator makes strategic investment in Invictus CP

ASX-listed diversified asset management, Navigator Global Investments, has acquired a passive strategic ownership interest in Invictus Capital Partners, and its affiliates, Invictus Capital Partners.

The move would see US$15 million to be paid at closing, and US$85 million of consideration payments over up to three years, of which most of the capital would be directed to support “growth initiatives”, the company said in the announcement made to the Australian Securities Exchange (ASX).

According to the firm, the investment in Invictus highlighted its leading position as one of the most active non-bank investors in the US residential real estate finance market, which has US$2.3 billion of assets under management (AUM) across multiple products.

“This investment represents an exciting opportunity to partner with a proven and growing specialised asset manager that brings further diversification to our existing investment portfolio and will create value for Navigator shareholders,” Navigator’s chairman, Michael Shepherd, said.

Navigator entered into a new credit agreement with its current lender, BMO Harris Bank, for a new secured credit facility in the aggregate principal amount of an immediate US$50 million of capacity with the potential for this to be increased to US$a75 million from an additional lender arranged and administered by BMO.

The company also said that in order to accommodate the payment of the up-front consideration without immediately drawing on available debt facilities, NGI’s upcoming FY22 second half dividend payment would be reduced and result in a payout range of 50-60% of for the full 2022 financial year adjusted EBITDA.