The Company’s investment policy is to provide equity finance for buyouts. Investments are diversified by region, sector and deal size. The Company achieves this through its commitments to limited partnership funds managed by LGV Capital Ltd ("LGV") and non-LGV private equity fund managers.
The LGV funds invest in UK mid-market buyouts valued at over £50 million and focused on businesses in the consumer, leisure, services and healthcare sectors.
Funds managed by non-LGV private equity fund managers focus on buyouts but without the restrictions in terms of geographic focus or deal size range.
The Company invests in certain private equity listed vehicles (established in the UK or overseas) in order to maintain exposure to the private equity sector instead of holding cash balances.
The Company invests no more than 15% of its gross assets in individual company investments, other than UK listed investment companies which themselves have published investment policies to invest no more than 15% of their total assets in other listed investment companies.
The Company may use gearing to meet its investment objective. The Company will ensure that the ratio of total consolidated assets, after deducting current liabilities, to total net debt is at least 3:1.
