Investment Restrictions

There are no restrictions placed on the market capitalisation of investee companies, but the portfolio will be weighted towards small cap companies with market capitalisations of up to $1 billion.

Once fully invested, the portfolio is expected to have between 5 and 20 holdings although there is no guarantee that this will be the case and it may contain a lesser or greater number of holdings at any time.

The Company acquires large minority stakes of approximately 4.9 to 25.0 per cent. in each investee company. Nevertheless, in certain limited circumstances the Company may acquire a larger stake in an investee company if the investment case so warrants. The Company will not, however, acquire any stake which could cause a change in its status as an investment trust under Chapter 4 of Part 24 of the Corporation Tax Act 2010. The Company intends to have invested substantially all of the proceeds of the Issue within 6 months of the date of first admission.

The Company will comply with the following investment restrictions for so long as they remain requirements of the Listing Rules (with which the Company has voluntarily undertaken to comply):

  • neither the Company, nor any of its subsidiaries will conduct any trading activity which is significant in the context of the group as a whole; and
  • the Company must, at all times, invest and manage its assets in a way which is consistent with its object of spreading investment risk and in accordance with the published investment policy.