Nevertheless, we see that the valuations rally of H220 was not uniform (both in public and private equity markets) and was fuelled by sectors that have proven resilient to lockdowns. The prevalence of covenant-lite loans also played an important role in averting a sudden spike in defaults in the initial phase of the crisis.
Meanwhile, the western world economy has avoided a major crisis so far and corporate default rates remain relatively low, supported by various governmental initiatives and access to private debt financing, which has developed visibly after the Global Financial Crisis (GFC). The financial markets rebounded quickly after the coronavirus-induced broad sell-off in March 2020 with the help of record-high monetary stimulus and unprecedently low interest rates. Market outlook: Low interest rates keep valuations high Tetragon sees room for further growth in AUM of TFG Asset Management and does not expect to float the business in the near term (which, however, remains its long-term intention). Nevertheless, the current discount offers considerable downside protection to investors, who are also rewarded through dividends (4.1% yield on a last 12 months basis) and NAV-accretive share buybacks. The recent enforcement action of the US Securities and Exchange Commission (SEC) against Ripple Labs (7.3% of Tetragon’s NAV) may add to this. This may at least partly come from its incentive fee structure (which also dampened the NAV TR in FY20), only non-voting shares being available to investors (which means Tetragon cannot enter LSE’s premium segment) and TFG Asset Management’s carrying value being based on private valuation. Tetragon is registered in the public register of the Netherlands Authority for the Financial Markets under Section 1:107 of the Financial Markets Supervision Act as a collective investment scheme from a designated country.Despite the long-term NAV returns Tetragon demonstrated, its shares continue to trade at a wide discount of 63%, which is ahead of the already wide 10-year average of 43% and visibly higher than its peers. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act. In addition, Tetragon has not been and will not be registered under the U.S. Tetragon does not intend to register any portion of its securities in the United States or to conduct a public offer of securities in the United States. persons unless they are registered under applicable law or exempt from registration. Securities Act of 1933 and may not be offered or sold in the United States or to U.S.
The securities of Tetragon have not been and will not be registered under the U.S. This release does not contain or constitute an offer to sell or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. For more information please visit the company's website at Tetragon: The company's non-voting shares are traded on Euronext in Amsterdam, a regulated market of Euronext Amsterdam N.V., and on the Specialist Fund Segment of the main market of the London Stock Exchange. It aims to provide stable returns to investors across various credit, equity, interest rate, inflation and real estate cycles. Tetragon's investment objective is to generate distributable income and capital appreciation. Where appropriate, through TFG Asset Management, Tetragon seeks to own all, or a portion, of asset management companies with which it invests in order to enhance the returns achieved on its capital. Tetragon is a closed-ended investment company that invests in a broad range of assets, including public and private equities and credit (including distressed securities and structured credit), convertible bonds, real estate, venture capital, infrastructure, bank loans and TFG Asset Management, a diversified alternative asset management business.
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