Closed-ended investment company BACIT is seeking a full listing on the London Stock Exchange, offering up to 500m shares at a pound a pop.
BACIT will target an annualised return per share (taking into account both growth in net asset value and any distributions on the shares) in the range of 10% to 15% per annum on the £1 per share offer price.
The company, which has an investment objective to deliver superior returns from investments in leading long-only and alternative investment funds across multiple asset classes, is looking to raise £250m (gross) via a share placing and an offer for subscription.
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On the firm's investment radar are: long-only funds, hedge funds that pursue multiple investment strategies, private equity funds (mainly in the buy-out, growth equity, venture capital, secondaries and mezzanine debt sectors) and real estate funds.
In addition, the group intends to invest up to 1% of its net asset value (NAV) each year to acquire interests in drug development and medical innovation projects undertaken by the Institute of Cancer Research (ICR).
The firm said 1% of NAV will be donated annually to charity with half of that going to the ICR and the other half to the BACIT Foundation, which, in turn, will donate the money to charities. Lined up for support in the year to March 31st, 2013 are: Alzheimer's Research UK, The Alzheimer's Society, Beating Bowel Cancer, Downside Up, The Egmont Trust, The James Wentworth-Stanley Memorial Fund, The Louis Dundas Centre for Children's Palliative Care, Maggie's, Marie Curie Cancer Care, NSPCC, Scope, SSAFA Forces Help and Women for Women International.
"For many years I have wanted to find a way to combine my background in fund management with supporting the incredible work of the ICR. I believe this investment company will deliver superior investment returns and, I hope, also take a small step towards the ICR's vision of defeating cancer," said Tom Henderson, a member of the management team who is the founder and investment manager of New Generation Haldane Fund Management (formerly known as Eden Capital).
The opening NAV per share is expected to be 98.7p, assuming £250m is raised. It is anticipated that, on an ongoing basis, the company should have an annualised total expense ratio of between 0.2% and 0.3% of NAV, assuming £250m is raised.
The latest time for the receipt of application of shares in the placing is, provisionally, noon (London time) on October 22nd, 2012.
Applicants under the offer for subscription, which has a minimum subscription requirement of 1,000 shares, will be required to apply for shares at the offer price payable in full on application, to be received by the Capita Registrars no later than 1.00pm on October 19th, 2012.
JH
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