UK medical research in line for new City fund of funds windfalls
This article was originally published in Scrip
A group of financial whizzkids (not sure what the collective noun is, a wallet of bankers?) has unveiled plans to float a new fund on the London Stock Exchange that is expected to generate millions each year to support UK medical research. The founders of the Battle Against Cancer Investment Trust (BACIT), a newly formed, self-managed, closed-ended investment company, have announced their intention to launch an initial public offering on the London Stock Exchange (bit.ly/QhAPU5).
The company is targeting to raise gross proceeds of £250 million although it could issue as many as 500 million shares at 100p each. Application of shares need to be made before 12 Noon (London time) on 22 October 2012.
BACIT's investment objective is to deliver superior returns (10% to 15%) from investments in leading long-only and alternative investment funds across multiple asset classes. The new fund will allocate the proceeds with 28 individual fund managers running long only funds, hedge funds, private equity funds, primarily in the buy-out, growth equity, venture capital, secondaries and mezzanine debt sectors, and real estate funds.
Importantly, no investments made by BACITs will be subject to any management or performance fees and the management team will provide its services without charge to the company or subsidiaries.
BACIT intends to invest 1% of NAV each year to acquire interests in drug development and medical innovation projects that show commercial promise as therapeutics undertaken by the Institute of Cancer Research. Moreover, BACIT will donate 1% of NAV to charity, half to ICR and half to other charities such as Alzheimer's Research UK and The Louis Dundas Centre for Children's Palliative Care.
The management team, which will be responsible for investment decisions, comprises Tom Henderson, Arabella Cecil, John McDonald and Jorge Villon. The company's board will be chaired by Jeremy Tigue, who manages Foreign & Colonial, the UK's oldest investment trust, and comprises Peter Hames, Tom Henderson, Colin Maltby, Nicholas Moss, Jon Moulton and Martin Thomas.