Many very small firms lose their way once their owners achieve a public listing. Some become disillusioned by the administrative burden and costs. Raising capital for expansion can turn out to be more of a problem than expected. Corporate governance is often weak and succession planning for key management may be non-existent. So for most investors, these micro-cap companies are more trouble than they’re worth.
Downing, a boutique asset manager specialising in small companies, is raising up to £100m for an innovative investment trust that will take advantage of this opportunity. The Downing Strategic Micro-Cap [...]