Angel Oak Financial Strategies Income Term Trust Reports Announcement by Angel Oak Companies, LP of Acquisition Transaction
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) announced that Brookfield Asset Management will acquire a majority stake in Angel Oak Companies, LP, the parent company of its investment adviser Angel Oak Capital Advisors,
The transaction is expected to complete by September 30, 2025, triggering a change of control that will automatically terminate the existing investment advisory agreement. The Fund's Board of Trustees will consider approving a new advisory agreement, which will require shareholder approval at a special meeting.
The new agreement is expected to maintain the same advisory fee structure and similar terms as the existing one, with no material changes to the Fund's investment objective and strategies. The day-to-day management of the Fund is not expected to change significantly.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) ha annunciato che Brookfield Asset Management acquisirà una partecipazione di maggioranza in Angel Oak Companies, LP, la società madre del suo consulente per gli investimenti Angel Oak Capital Advisors.
La transazione dovrebbe concludersi entro il 30 settembre 2025, innescando un cambio di controllo che terminerà automaticamente l'attuale accordo di consulenza per gli investimenti. Il Consiglio di Amministrazione del Fondo valuterà l'approvazione di un nuovo accordo di consulenza, che richiederà l'approvazione degli azionisti in un'assemblea straordinaria.
Si prevede che il nuovo accordo mantenga la stessa struttura delle commissioni di consulenza e termini simili a quelli dell'accordo esistente, senza modifiche sostanziali agli obiettivi e alle strategie di investimento del Fondo. La gestione quotidiana del Fondo non dovrebbe subire cambiamenti significativi.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) anunció que Brookfield Asset Management adquirirá una participación mayoritaria en Angel Oak Companies, LP, la empresa matriz de su asesor de inversiones Angel Oak Capital Advisors.
Se espera que la transacción se complete para el 30 de septiembre de 2025, lo que desencadenará un cambio de control que terminará automáticamente el acuerdo de asesoría de inversiones existente. La Junta de Fideicomisarios del Fondo considerará la aprobación de un nuevo acuerdo de asesoría, que requerirá la aprobación de los accionistas en una reunión especial.
Se espera que el nuevo acuerdo mantenga la misma estructura de tarifas de asesoría y términos similares al existente, sin cambios materiales en los objetivos y estrategias de inversión del Fondo. No se espera que la gestión diaria del Fondo cambie significativamente.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS)는 Brookfield Asset Management가 Angel Oak Companies, LP의 대다수 지분을 인수할 것이라고 발표했습니다. Angel Oak Capital Advisors의 투자 자문사인 이 회사의 모회사입니다.
이번 거래는 2025년 9월 30일까지 완료될 것으로 예상되며, 이는 기존 투자 자문 계약을 자동으로 종료하는 지배권 변경을 촉발할 것입니다. 펀드의 이사회는 특별 회의에서 주주 승인을 요구하는 새로운 자문 계약을 승인하는 것을 고려할 것입니다.
새로운 계약은 기존 계약과 유사한 조건과 동일한 자문 수수료 구조를 유지할 것으로 예상되며, 펀드의 투자 목표와 전략에 대한 중대한 변경은 없습니다. 펀드의 일상적인 관리는 크게 변화하지 않을 것으로 예상됩니다.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) a annoncé que Brookfield Asset Management acquerra une participation majoritaire dans Angel Oak Companies, LP, la société mère de son conseiller en investissement Angel Oak Capital Advisors.
La transaction devrait être finalisée d'ici le 30 septembre 2025, entraînant un changement de contrôle qui mettra automatiquement fin à l'accord de conseil en investissement existant. Le conseil d'administration du Fonds envisagera d'approuver un nouvel accord de conseil, qui nécessitera l'approbation des actionnaires lors d'une assemblée spéciale.
Il est prévu que le nouvel accord maintienne la même structure de frais de conseil et des conditions similaires à celles de l'accord existant, sans modifications matérielles des objectifs et des stratégies d'investissement du Fonds. La gestion quotidienne du Fonds ne devrait pas changer de manière significative.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) gab bekannt, dass Brookfield Asset Management eine Mehrheitsbeteiligung an Angel Oak Companies, LP, der Muttergesellschaft seines Anlageberaters Angel Oak Capital Advisors, erwerben wird.
Die Transaktion soll bis zum 30. September 2025 abgeschlossen sein, was einen Kontrollwechsel auslöst, der automatisch die bestehende Anlageberatungsvereinbarung beendet. Der Vorstand des Fonds wird die Genehmigung einer neuen Beratungsvereinbarung in Erwägung ziehen, die die Zustimmung der Aktionäre in einer außerordentlichen Sitzung erfordert.
Es wird erwartet, dass die neue Vereinbarung die gleiche Gebührenstruktur für die Beratung und ähnliche Bedingungen wie die bestehende beibehält, ohne wesentliche Änderungen an den Anlagezielen und -strategien des Fonds. Die tägliche Verwaltung des Fonds wird voraussichtlich nicht erheblich verändert.
- Strategic partnership with major asset manager Brookfield could enhance operational capabilities
- No changes to fund management fees expected
- Investment strategy and objectives to remain unchanged
- Transaction completion subject to uncertain conditions
- Additional fund expenses for proxy solicitation process
- Risk of disruption if shareholders don't approve new advisory agreement
Insights
This announcement details Brookfield Asset Management's agreement to acquire a majority stake in Angel Oak Companies, which has triggered important regulatory mechanisms under the Investment Company Act of 1940. The transaction, expected to close by September 30, 2025, will create a change of control that automatically terminates the existing advisory agreement between Angel Oak Capital Advisors and the FINS trust.
What's critical for investors to understand is that this regulatory termination is a standard procedural requirement, not a cause for concern. The board will need to approve a new investment advisory agreement, which will then require shareholder approval at a special meeting. The announcement explicitly states the new agreement will maintain the same advisory fee structure and substantially similar terms to the existing agreement, with no material changes to the fund's investment objective or strategies.
While management continuity is promised, this transition still introduces execution risk during the approval process. The requirement for shareholder approval creates a procedural hurdle that must be cleared for the fund's management to continue seamlessly. The forthcoming proxy statement will provide the detailed information investors should evaluate before voting. This type of advisory transition following acquisition is common in the industry and typically proceeds without disruption to fund operations when properly managed.
This acquisition represents a significant ownership change for FINS's management structure without appearing to alter its fundamental investment approach. Brookfield's acquisition of a controlling stake in Angel Oak Companies introduces both potential opportunities and uncertainties for the trust's shareholders.
On the positive side, Brookfield brings substantial resources and institutional backing that could potentially strengthen Angel Oak's operations. However, any change in controlling ownership introduces integration risks and potential for subtle shifts in corporate culture that could eventually influence investment decisions, despite the stated intention of maintaining operational continuity.
Particularly notable is the statement that the transaction "is not expected to result in any material change in the day-to-day management" and that the new advisory agreement will have "the same advisory fee and substantially similar terms." These commitments suggest minimal disruption for existing investors, though the qualifier "substantially similar" rather than "identical" leaves room for minor modifications.
The regulatory mechanism requiring shareholder approval provides investors with leverage in this process. Shareholders should carefully review the forthcoming proxy materials to understand any nuanced differences between the existing and proposed advisory agreements before casting their votes. This change of control, while procedurally significant, appears designed to maintain investment continuity while changing the ultimate parent organization.
If successful, the closing of the Transaction will result in a change of control of Angel Oak (the “Change of Control”). Consistent with applicable requirements under the Investment Company Act of 1940, as amended (the “1940 Act”), the current investment advisory agreement between Angel Oak and the Fund (the “Existing Advisory Agreement”), contains a provision that the Existing Advisory Agreement will automatically terminate in the event of an “assignment” (as defined in the 1940 Act). The Change of Control will cause an assignment of the Existing Advisory Agreement and will result in the automatic termination of the Existing Advisory Agreement.
At a meeting to be held prior to the anticipated closing of the Transaction, the Board of Trustees (the “Board”) of the Fund will consider the approval of a new investment advisory agreement between Angel Oak and the Fund (the “New Advisory Agreement”). If approved by the Board, the New Advisory Agreement would also need to be approved by shareholders of the Fund at a special meeting of shareholders (the “Special Shareholder Meeting”), at which the Fund’s shareholders will be asked to consider the approval of the New Advisory Agreement. The New Advisory Agreement is expected to have the same advisory fee and substantially similar terms and conditions to the Existing Advisory Agreement. The New Advisory Agreement will not result in any material changes to the Fund’s investment objective and principal investment strategies.
More detailed information about the Change of Control and the proposal to be voted on at the Special Shareholder Meeting will be provided in a forthcoming proxy statement. When you receive your proxy statement, please review it carefully and cast your vote to avoid the additional expense to the Fund of any future solicitations. This Supplement is not a proxy and is not soliciting any proxy, which can only be done by means of a proxy statement.
About FINS
Led by Angel Oak’s experienced financial services team, FINS invests predominantly in
About Angel Oak Capital Advisors, LLC
Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak Capital Advisors seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.
Information regarding the Fund and Angel Oak Capital Advisors can be found at www.angeloakcapital.com.
For additional information regarding the fees and expenses associated with an investment in shares of the Fund, see the prospectus supplement and accompanying prospectus when available.
Past performance is neither indicative nor a guarantee of future results. Investors should read the prospectus supplement and accompanying prospectus, when available, and consider the investment objectives and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. For more information, please contact your investment representative or EQ Fund Solutions at 866-751-6314.
Cautionary note regarding forward-looking statements
Certain statements contained herein constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund’s actual results or level of performance to be materially different from any future results or level of performance expressed or implied by such forward-looking statements. Such factors include, among others, those listed in the prospectus supplement and accompany the prospectus when available. As a result of these and other factors, the Fund cannot give you any assurances as to its future results or level of performance, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250401259056/en/
Media:
Trevor Davis, Gregory FCA for Angel Oak Capital Advisors
443-248-0359
trevor@gregoryfca.com
Company Contact:
Randy Chrisman, Chief Marketing and Corporate IR Officer, Angel Oak Capital Advisors
404-953-4969
randy.chrisman@angeloakcapital.com
Source: Angel Oak Financial Strategies Income Term Trust
FAQ
When will Brookfield's acquisition of Angel Oak Companies affecting FINS complete?
Will FINS shareholders need to vote on the new investment advisory agreement?
How will Brookfield's acquisition impact FINS fund management fees?
Will FINS investment strategy change after Brookfield's acquisition of Angel Oak?
