FHW Capital earlier this week completed its first deal since being established by former Hadrian’s Wall Capital senior executives Glenn Fox, Alastair Watson and Severin Hiller.
The firm was formed in the aftermath of Hadrian’s Wall’s decision in July to wind up its debut infrastructure debt fund and return capital raised up to that point to investors. The fund had set out to raise more than €1 billion for a mixed euro/sterling fund but took two years to reach a £150 million first close.
Fox, Watson and Hiller were chief investment officer, chief operating officer and investment director respectively at Hadrian’s Wall. Following the wind-up of the fund, they launched FHW Capital (based on the first letters of their surnames) to provide due diligence, document negotiation and monitoring and reporting services to capital markets investors.
Earlier this week, FHW Capital carried out senior debt due diligence and document negotiation on almost £83 million (€99 million; $134 million) of wholesale bonds that were issued and placed with institutional investors, with proceeds to be on-lent to Salford City Council’s New Pendleton Social Housing Private Finance Initiative (PFI) project in Greater Manchester, north-west England.
The financing was described in a statement as the “first two-tranche listed unwrapped bond for a new PFI project”.
In a joint statement, Fox and Watson said: “The deal represents an important step towards facilitating institutional investors’ access to infrastructure debt, and demonstrates the value that can be delivered through robust credit enhancement.”
Hadrian’s Wall had been led by chief executive Marc Bajer, who told Infrastructure Investor in July that he would continue “working to assist market counterparties and fixed income investors in order to move forward the development of a fixed income market for infrastructure financing”.