Marwyn Value Investors (MVI), the Cayman Islands fund that employs a private equity style “buy and build” strategy to UK smaller companies, has published a circular detailing its 2026 realisation share offer.
This is the third such offer since the investment company started giving shareholders five-yearly opportunities to switch from the MVI ordinary shares into realisation shares, whose assets are gradually sold and capital returned. The 2021 realisation shares trade under the ticker MVR2.
The fund managers and directors of the company say they will not be switching into the new realisation shares.
Our view
David Batchelor, senior analyst at QuotedData, said: “MVI’s latest realisation offer gives shareholders an opportunity to prioritise the return of capital over continued investment, but this is certainly not an immediate exit at NAV. The 2026 realisation shares will receive the proceeds from disposals rather than reinvesting them, but there will be no accelerated sales of underlying holdings. Indeed, the manager has indicated that it has no predetermined plans to exit any investments over the next 12 to 24 months. With MVI’s ordinary shares trading at a 44% discount to NAV at the end of June, the attraction of recovering more of the underlying value is understandable, although the timetable remains uncertain.
“Investors electing for realisation shares will forgo the ordinary shares’ quarterly dividend, currently equivalent to 9.06p annually, with any income rolled up in realisation class NAV. The 2% annual management fee on NAV will still be incurred. The fact that the 2016 realisation shares remain in existence almost a decade later illustrates how lengthy the process can be – albeit holders have received nearly 90% of their NAV back in cash – while holders of the 2021 realisation shares have received no distributions at all. It is also notable that none of the directors or manager’s employees holding ordinary shares intend to participate.”
