Investment Week : Merian trust reaction: ‘Exciting’ but ‘high risk’
James Carthew, head of investment company research at QuotedData is quoted in the following article:
Investment Week : Merian trust reaction: ‘Exciting’ but ‘high risk’
Merian targeting a fundraising of £200m
The reception to Merian Global Investors’ plans to launch its first trust investing in unquoted companies has been largely positive, although not without warnings.
On Monday (10 September) Richard Buxton’s firm Merian announced its first fund launch following Old Mutual Global Investors’ (OMGI) rebrand to Merian Global Investors, which comes into effect at the beginning of October.
The firm is targeting a fundraising of £200m through an initial placing alongside the launch of a 12-month placing programme.
The trust, Merian Chrysalis Investment Company, will be run by small- and mid-cap managers Richard Watts and Nick Williamson, and aims to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies.
Industry commentators described the proposals as “exciting” and predicted “strong interest”, but warned the vehicle would be “high risk”, “unlikely to deliver any real performance in the early years” and dependent on private market activity.
Reaction
James Carthew, head of investment company research at QuotedData, said there is likely to be a ‘J’ curve effect, as the early news from such funds is not always positive, adding that: “investors need to be prepared to look through this”….. click here to read the full article
Investment Week : Merian trust reaction: ‘Exciting’ but ‘high risk’