SV Health (manager and AIFM for International Biotechnology) has informed the trust that it wishes to focus on its core healthcare venture business – quitting the job of managing the fund. Ailsa Craig and Marek Poszepczynski, the current lead managers, want to stay on in the role. The board has agreed that they will continue to manage the quoted portfolio and Kate Bingham and Houman Ashrafian will continue to manage the unquoted assets while the board decides what to do next.
The board has instructed its advisers to commence an independent process to review its options. A further update to shareholders will be provided in due course.
Dame Kate Bingham, managing partner of SV Health, said “SV Health is now managing $2.2bn of private healthcare assets across its group and the time has come for us to focus on these core strategies. We will be working with the board of IBT to ensure a smooth transition over the coming months and look forward to a continued relationship with IBT as an investor in SV Health’s venture and crossover funds.”
SV Health has given the company notice of termination, which will take effect on 9 February 2024 unless agreed otherwise by both parties. In the light of the review process discussed above, the investment management agreement has been amended to allow termination on an earlier date. SV Health will most likely provide ongoing investment management services in respect of its unquoted assets in exchange for payment of a performance fee on the same terms as set out in the agreement.
Additionally, the agreement has been amended to clarify SV Health will get the annual performance fee calculated until the termination date of the agreement (still capped at 2% of NAV) and any deferred performance fees (capped at 4% of NAV) subject to a cap on the aggregate amount payable on termination of 4.99% of NAV. The previous position under the IMA was not clear.
[Cases of managers walking away from viable funds are extremely rare. If Marek and Ailsa are to continue running the fund, they’ll need a new home with appropriate logistical and compliance support. They might also need an analyst team. There should be a few management houses interested in picking up a £300m trust, however. We wish them all the best.]
IBT : International Biotechnology manager quits