- Investment trust Pollen Street Secured Lending said it had selected potential takeover suitor Waterfall Asset Management as its new investment advisor.

The company had in February served 12 months' notice to current advisor PSC Credit.

'The board has progressed discussions with a number of potential replacement investment managers and has now concluded on the preferred successor,' Pollen Street said.

Waterfall had been signed up on an interim advisory agreement and was expected to be appointed as the replacement investment manager as soon as practicable.

Pollen Street said it continued to review all options in the event that a possible cash offer by funds advised by Waterfall for the company did not proceed.

It added that it continued to believe that a cash offer from Waterfall would represent the best outcome for shareholders, while a competing offer by Honeycomb did not compares favourably in value or liquidity terms.

'The board believes that the expected appointment of Waterfall as investment manager will facilitate a transparent run-off process at materially lower management and performance fees than under the existing investment management agreement,' Pollen Street said.

'Waterfall has confirmed that its proposed investment management agreement would be terminable on 30 days' notice with no additional compensation in the event of a completed offer for the duration of the current offer period.'

'In addition, for the period to 31 March 2021, Waterfall has confirmed that its aggregate fees would be capped at £2m in any event including in the event of termination following a completed offer by any party before 31 March 2021.

'The board believes that Waterfall's appointment would also materially increase the likelihood that a firm all cash offer will be brought to the table for shareholders to consider.'

At 2:43pm: [LON:PSSL] Pollen Street Secured Lending PLC share price was +35p at 831p

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