Winterflood Monthly Report - September 2020
Monthly Reports
Potential IPOs suggest busy period of fundraising ahead
Unsurprisingly, 2020 has not proven a bumper year so far for fundraising across the Investment Companies sector. While regular issuance from funds trading on premium ratings has continued to be buoyant, there has been only one IPO so far this year: Nippon Active Value Fund, which raised £103m in February. This may be about to change and we suspect the next few months will be busy ones for fundraising. Despite the restrictions on working practices at present, it appears that several IPOs are in the pipeline. This includes Triple Point Energy Efficiency Infrastructure*, which is looking to raise £200m through its IPO, which will close in October. This fund is targeting a 7-8% return, including an initial 5p dividend, through investment in UK energy efficiency assets.
Another potential IPO is Home REIT, which is targeting a fundraise of £250m and is hoping to launch by mid-October. This fund, which will be managed by Alvarium Investments, will be invested in UK assets that are dedicated to providing accommodation to the homeless. It is targeting a minimum annual dividend of 5.5p from its FY2022, with a net shareholder return of at least 7.5% p.a. over the medium term. In addition, according to media reports, Tellworth British Recovery & Growth is planning an IPO to raise at least £100m to invest in listed companies with a concentrated portfolio across the UK market cap spectrum. The fund’s lead managers will be Paul Marriage, John Warren and Johnnie Smith of Tellworth Investments.
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