Fund Finance Briefs: Park Square Capital Gets Subscription Credit Line
Canada Pension Plan Investment Board enters into sponsored repo agreements with Morgan Stanley and BofA
Park Square Capital
Funds managed by Park Square Capital, a private credit investor based in London, entered into a revolving credit agreement dated as of December 5 with Bank of America NA, according to a regulatory filing. The credit line is secured in part by the funds’ rights to make capital calls and receive capital contributions.
PSC US Loan Partners I Aggregator SCSP of Luxembourg is listed as a borrower under the credit agreement. Other parties to the credit line include Park Square Capital US Loan Partners I LP, Park Square Capital European Loan Partners III (DL) SCSP and the general partners to the funds.
Park Square US Loan Partners filed a private placement notice with the US Securities and Exchange Commission in November, an initial step in raising capital from investors.
Park Square Capital, founded by Robin Doumar in 2004, managed almost $21 billion in regulatory assets at the end of June. The firm last month registered a separate US money management unit under the name Park Square Capital USA LP.
Before starting Park Square, Doumar worked at Goldman Sachs Group Inc., where he headed the bank’s US workout and restructuring practice.
Canada Pension Plan Investment Board
The Canada Pension Plan Investment Board is accessing the US central clearing facility for Treasuries repo through two separate sponsorship agreements with Morgan Stanley & Co. and BofA Securities Inc., according to regulatory filings from this month and December.
Under these arrangements, Morgan Stanley and BofA agree to sponsor the pension board’s participation in the central clearing facility run by the Fixed Income Clearing Corp. The benefits for the pension board include reduced counterparty risk and the ability to trade government repo with a broader universe of banks and investors.
The pension board, also known as CPP Investments, manages pension assets on behalf of roughly 22 million Canadians.
CPP Investments reported that securities and loans sold under repurchase agreements, combined with cash collateral on securities lent, totaled C$113.3 billion at the end of March, up from C$72.1 billion a year earlier. Almost all of this financing is scheduled to mature within a year, according to the pension board’s annual report.
The pension board had almost C$778 billion in assets under management at the end of September, according to its website, including some C$370 billion invested in the U.S. The fund has generated a 10-year annualized net return of 8.8%.