Investment Strategy

Following Admission, the Company will, with the advice of the Investment Advisor, consider investment opportunities mainly in the natural resources, consumer products, technology and services sectors. These investment opportunities will primarily be in the UK and Europe, but may be made in any country worldwide. The investments may be in quoted or unquoted entities (including, for these purposes, entities quoted on AIM) or be interests in companies or other entities whose equity value is up to £1 billion. Particular consideration will be given to identifying investments which are, in the opinion of the Directors, under-performing or undervalued and where the Directors believe that the Company's or Investment Advisor's expertise and experience can be deployed to facilitate growth in or unlock inherent value from an Investee Company.

 

The Directors envisage that the Company will have a concentrated and actively managed portfolio of investments. The Company may, however have over 25 per cent. of its NAV in one investment.  The Company generally intends that no single investment of the Company would exceed 25 per cent. of its NAV at the time that investment is made, but this may be exceeded by the Company at the Boards discretion.

The Company may invest in an unlisted entity even where the aggregate value of its investments in unlisted entities exceeds 50 per cent. of the Company's NAV.  Generally the Company will have an expectation of a liquidity event (such as a trade sale or listing) in respect of that event occurring within 12 months after making that investment.  The Company may however, at the Board's discretion, make investments where the expectation of a liquidity event taking place is longer than 12 months. 

The Company will seek where necessary to mitigate any liquidity constraints in its portfolio through the use of derivative instruments and liquid securities. 

The Company may borrow against its portfolio to increase its leverage. The Company's intention is that when it borrows, the aggregate of all such borrowing will not exceed 25 per cent. of the Company's NAV. 

To assist the Directors in the investment decision making process, the Investment Advisor will carry out, or commission third parties to carry out, appropriate due diligence on proposed investments. This may include company visits, management interviews, researching the market position and strategy of potential Investee Companies, and carrying out a "SWOT" analysis and/or a financial evaluation of the Investee Company. 

The Directors anticipate that the resources of the Company will be fully invested within two years of Admission. In accordance with the AIM Rules, and for so long as the Company is deemed to be an Investing Company (as defined in the AIM Rules), proposals will be put to Shareholders annually in relation to the continuance of the Company's business. 

The Directors consider that it is possible that, as investments are made, and new investment opportunities arise, further funding of the Company may be sought. 

The Investment Advisor will provide the Board with monthly updates on the Company's unaudited NAV, investments made and prospective investments. The Company will also announce its unaudited NAV on a monthly basis through a Regulatory Information Service (as defined in the AIM Rules).