The Gresham House Energy Storage fund is inching closer to large wealth managers’ radars as it seeks to raise further funds that would take it close to the £200m it targeted at launch.
The trust is looking to raise £5m to £11m to accommodate demand from shareholders that were not able to subscribe to the £49.7m fundraise at the end of May, just six weeks ago.
A spokesperson told Portfolio Adviser the trust anticipates that as other institutional investors complete due diligence one or two more placings will take place before mid October, when the placing programme closes. The investment trust, which now has assets totaling £147.1m, launched in November last year raising £100m.
Ahead of the trust’s IPO, Gresham House said it was confident it could deploy up to £200m in a tangible pipeline within 12 months of launch.
It currently trades at an 11.1% premium, according to the Association of Investment Companies.
Niche trust needs more AUM to interest large wealth managers
Tilney managing director Jason Hollands described the investment trust as niche, noting it owns five UK operational energy storage plants.
“The investment company is still quite small in size, so as it grows through further rounds of fundraising it should be able to potentially garner interest from larger wealth managers who might be reluctant to invest at its current size,” Hollands said.
Periodic fundraising is common for infrastructure investment trusts depending on demand and the pipeline of new investment opportunities, he said.
The investment trust is targeting a dividend of 4.5p per share in the current year and 7p in subsequent years.
Gresham House builds out business
Hollands said Gresham House, the investment manager and AIFM on the trust, had recently been “very active” building out its capabilities.
It had acquired Livingbridge’s fund management business, including the Baronsmead VCT range, and specialist renewable energy and forestry manager FIM.
Additionally, it has struck up a strategic partnership with Aberdeen Standard for distribution purposes.
