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Reflecting the challenges faced by UK businesss, Schroders has announced plans to launch the Schroder British Opportunities Trust, a new investment trust focused on investing in UK business growth, while supporting UK employment through the pandemic and beyond.
The trust aims to invest in high-quality, small and mid-sized UK companies with sustainable business models. These companies may require additional equity either to support growth or return them to their previous trajectory, Schroders stated.
The UK manager is planning to raise £250 million, via an initial public offering, to invest in a public/private equity investment strategy with the goal of providing long-term total returns. The investment team is led by Schroders’ senior investors Rory Bateman, head of equities, and Tim Creed, head of UK and European private equity.
Bateman said: “This is a once-in-a-generation opportunity to invest in the future of British business and produce substantial returns while making a positive impact.
“The companies that require funding are often too large to be the focus of government initiatives, but too small to have the necessary impact with banks or credit markets. The current level of UK government debt-driven support is unsustainable and as support comes to an end, we believe many high-quality UK growth businesses will require an injection of ‘fresh’ equity to grow and succeed through the pandemic and beyond.”