UK – Standard Life Investments has launched its first investment trust, Standard Life European Private Equity Trust, at an anticipated market capitalisation of £160m (e260m).

The trust is aimed at institutional investors and will mainly invest in private equity funds across Europe, focusing on mid-sized management buy-outs and expansion capital opportunities in the £100-400m range.

The portfolio will initially consist of 19 private equity fund interests transferred to the trust from its parent company, Standard Life Assurance Company. As a payment, the trust will hand over a bulk of its ordinary shares worth around £81m.
The company hopes to raise a further £79 from institutional investors.

Dealings in the trust’s ordinary shares, at £1 each, on the London Stock Exchange are expected to start on May 29. After expenses, the initial net asset value of the trust is expected to be 98.6p per share. UBS Warburg is sponsor to the flotation and acts as placing agent.

The company expects ultimately to have more than 35 fund investments, and will aim at long-term capital growth.
Standard Life Investments’ private equity team manages around £700m of private equity assets.

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