EJF Investments IPO has been confirmed to take place during the weeks of next month (April 7th or near) as the US hedge fund owner aims to generate a 6% yield by investing in financial services:
EJF said proceeds of the placing will fund its acquisition pipeline, targeting risk retention, capital solutions and asset backed securities & specialty finance. The company is targeting a risk-adjusted net asset value return of between 8% and 10% per annum, including a 6% yearly cash dividend.
“Continuing regulatory upheaval in the financial industry offers a unique set of investment opportunities. The combination of attractive legacy assets, shifting regulatory requirements and changing balance sheet strategies at the major banks has allowed us to assemble a portfolio offering diversification, stable cashflows and attractive yields,” said Neal Wilson, chief executive of EJF Investments Manger.