The fund’s initial public offering raised £800m ($1.2bn), breaking the previous record set when Mercury European Privatisation Fund raised £549m at its launch in 1994.
The Mercury Fund broke the record set just one month earlier by the Kleinwort European Privatisation Fund, which raised £481m, and pushed Fidelity’s China Special Situations Fund, launched in April 2010 and raised £460m, into fourth place.
“It’s a testament to the investment company sector that this distinctive company is taking advantage of the benefits of the closed-ended structure, such as the ability to invest in specialist, small, less liquid assets,” said AIC chief executive Ian Sayers.
Woodford Patient Capital Trust originally targeted £200m but increased the IPO to £800m due to high investor demand. It is due to list on the stock market on 21 April.
The fund aims to achieve long-term capital growth through investing in a portfolio consisting predominantly of UK companies, both quoted and unquoted.
Initially, the portfolio is expected to be dominated by mid- and large-cap listed, mature companies that offer growth opportunities, however over time the exposure to listed, early-stage and early-growth companies will gradually build.
Ultimately the portfolio is expected to consist of 25% in mid and large listed mature companies, 25% in early-growth companies which may be quoted or unquoted, and 50% invested in early-stage companies, also both quoted and unquoted.
