Small Cap Breakfast
24 Nov 16
Walls & Futures REIT — Has raised £1m at £1 to acquire, refurbish or develop residential properties in the UK . Due to arrive on ISDX on 29 November Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA
2016 YTD Fund raising review – Topping up
05 Oct 16
Secondary issuance has dominated in 2016. 3i Infrastructure (3IN) led with a monster £385m raise (target: £350m) in May. At a sector level, infrastructure (£700m), property (£500m, mostly pre-Brexit vote), and renewables (£340m) tapped heavily in Q2 & Q3 2016. The IPO market remains quiet with only one primary launch in 2016; Hadrian’s Wall Secured Investments (HWSL) raised £80m for secured lending to SMEs including equipment finance, property development, and commercial loans. We also note that six funds have repurchased more than £50m of stock YTD.
07 Jan 16
2015’s net issuance came in at £7.7bn (Gross: £9.7bn), slightly lower than 2014 (£9.7bn & £10.5bn respectively) with 23 new funds launched. Gross issuance rose in Q4 to c£2.5bn although the net figure was broadly flat on Q3 at c£1.8bn as share buybacks picked-up among several large global growth trusts and hedge funds. Four specialist debt vehicles launched, raising a combined £407m while Coupland Cardiff attracted £66.5m for Richard Aston’s CC Japan Income & Growth (CCJI LN, target: £200m) and Schroders achieved £108m for a new European commercial property REIT (SERE LN, target: £150m).
11 Aug 15
The sector attracted a gross £2.8bn in Q2 (Q2 2014: £1.8bn) of which roughly two thirds came via IPO, dominated by Woodford Patient Capital (£800m, WPCT). Besides WPCT, issuance was lead by new and existing debt vehicles across a range of alternative sectors including CLOS, SME lending, property and aircraft leasing. Six new funds were launched in Q2, raising a total of £1.6bn (average £160m, ex WPCT) and have returned an average 6.5% on IPO price. Amedeo Air Four Plus (AA4) became the fifth aircraft leasing fund and the fourth to invest in Airbus A380s, offering a dividend yield of 8.25%. Ranger Direct lending (£135m) joined the SME debt line-up offering a 10% yield, targeting direct lending platforms in contrast to newer peer-to-peer platforms. WPCT increased the size of its IPO to £800m (from £500m) and is currently traded at a c15% premium to NAV with a tap issuance programme in place to manage the rating. Having struggled to raise the initial £100m target at launch, Miton UK MicroCap Trust has recently started to tap the market, raising an additional £4.6m in Q3, taking the market cap to c£55m.