First helicopter KG fund delayed
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Doric innovative’s helicopter Kommanditgesellschaft (KG) fund has been delayed. But the arranger is still confident that it will close.
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Doric Asset Finance’s planned helicopter closed-end or Kommanditgesellschaft (KG fund) has been delayed but the arranger says it is still confident that the deal will go ahead. The fund is likely to close in 2012.
The KG arranger plans to sell a closed-end fund to German investors that will acquire five helicopters operated by CHC Helikopter. It will buy five different models of helicopter manufactured by Eurocopter, Sikorsky and AgustaWestland.
KG Funds are typically sold to private and institutional investors including insurance companies, pension funds and family offices. Shares are issued once to buy assets and although they can be traded they cannot be redeemed until the end of its term.
The helicopter fund will use cash raised from selling shares and some debt to acquire the helicopters which will be on long-term leases to CHC. At the end of the fund’s term the helicopters will be sold to repay investors.
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