Cabot Square Alternatives (ALTS) is targeting a £200m listing on the London Stock Exchange, claiming it will provide a new model for investors to access the sector.
The investment trust, which is focused on alternative assets and asset managers, will invest in a portfolio of infrastructure, property, and specialist debt, as well as in asset managers managing the holdings.
The firm will target a dividend of 3% in the first year and 5% in its second, with an annual total net asset value return of between 8% and 10%.
The assets will be managed by London-based private equity firm Cabot Square Capital, which has £760m assets under management.
Cabot Square said the investment trust had already received non-binding commitments of around £40m from three investors.
Keith Maddin, fund manager and partner Cabot Square Capital, said: “ALTS represents a new model for investors to access returns from investing directly in attractive infrastructure and property alternative assets as well as share in the value creation of specialist alternative asset managers by building alternative asset platforms. In addition to delivering target returns we will also focus investment on making a positive ESG impact”.
Charlie Rickets, Chairman of Cabot Square Alternatives, added: “We are delighted to announce our intention to launch ALTS and believe that our management team has the experience and expertise to deliver the target returns. Given our pipeline we expect to deploy the IPO proceeds efficiently and effectively”.
As well as raising £200m through the initial placing, ALTS announced the establishment of a share placing programme worth up to £500m.
Placing for ALTS is scheduled to close on 13 February, with shares admitted to the London Stock Exchange five days later.
Cantor Fitzgerald Europe is acting as sole bookrunner for the placing, with Kepler Partners acting as intermediaries offer adviser. BDO is acting as sponsor for the initial issue and admission.