The first investment trust launched by Merian Global Investors has raised £100m at the initial public offering (IPO) stage, half the amount intended.
Merian Chrysalis Investment Company is a new fund from asset manager Merian Global Investors, run by veteran British investor Richard Buxton, and its first devoted to unlisted firms.
In its prospectus, published earlier in October, the fund said it had hoped to raise £200m from the issue.
Merian was formerly known as Old Mutual Global Investors until it was subject to management buy-out earlier this year.
In a statement to the stock exchange, the company said applications had been made to the main market of the London Stock Exchange and dealing in the trust was expected to commence on 6 November.
Richard Watts, co-fund manager alongside Nick Williamson, said in that statement: “We are delighted to be launching the Merian Chrysalis Investment Company, which will offer investors exposure to a portfolio of exciting, later-stage private growth companies, a market that investors, typically, have had limited opportunities to access.
“Despite challenging market conditions – following the global sell-off in October, and investors adopting a cautious outlook – we are pleased to have raised £100m at launch.
“There is significant interest in the asset class and our strategy and we have identified a strong pipeline of high-growth private investment opportunities.”
Merian Chrysalis Investment Company aims to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies.
It will look to invest in attractively valued minority, private investments with long-term growth rates substantially better than the average UK company. Once fully invested, the trust is expected to have between seven and 15 investments, with net proceeds from the IPO expected to be substantially deployed within six to nine months of first admission.