6th Feb 2015 09:15
LONDON (Alliance News) - Woodford Investment Management LLP Friday revealed plans to launch Woodford Patient Capital Trust PLC on the London Stock Exchange's main market with the aim of raising GBP200 million through a placing and offer for subscription.
In a statement, Woodford Investment Management, which will manage the trust, said it will invest in a portfolio that will consist of UK companies in the main. Portfolio companies will include mid- and large-capitalisation listed, mature companies; early-growth companies, typically quoted; and early-stage companies, quoted and unquoted.
Woodford said it will not receive a management fee from the trust and will only be awarded a performance-based fee, which in a move to align interests with shareholders will be paid in shares.
The trust will target a return exceeding 10% per year over the longer term from a portfolio expected to consist of 50-100 holdings.
Woodford Investment Management was set up by renowned fund manager Neil Woodford upon leaving Invesco Perpetual last year after a quarter of a century with the investment manager. It had GBP9.3 billion of assets under management at the end of last month.
"Patient capital is the missing component for many companies and the reason why great innovation hasn't translated into commercial success for the UK economy," Woodford said.
"Patient capital investors work closely with early-stage businesses and help nurture them to achieve commercial success. It takes involvement, flexibility and above all, it takes time," he added.
Winterflood Securities, Close Brothers Group PLC's stockbroking arm, is handling the IPO.
By Samuel Agini; [email protected]; @samuelagini
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