Investment companies defied a difficult market backdrop to raise £4bn in the first six months of the year, even as IPOs ground to a halt.
The total raised via secondary fundraisings fell short of the record £5.1bn in H1 2021, but was still the third highest sum in the first six months of a year, according to figures provided by the Association of Investment Companies.
In keeping with the trend of the last several years, the Renewable Energy Infrastructure sector led the pack raising £1.2bn over the period, followed by Infrastructure (£621m) and Property – UK Commercial (£557m).
On an individual company basis, International Public Partnerships, which sits in the Infrastructure sector, had the largest fundraising at £326m. Rounding out the top three were Supermarket Reit, which raised £307m, and Renewable Infrastructure Group, which raised £277m.
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Industry assets dip to £265bn
Richard Stone (pictured), chief executive of the AIC, said the figures represent a “healthy fundraising” for existing investment companies during a volatile period.
“Rising inflation, tight labour markets and the war in Ukraine, with its knock-on impacts on supply chains and fuel costs, have made this a challenging year so far for capital markets.”
Not a single new investment company listed on the London Stock Exchange over the first half of the year, a stark contrast to H1 2021 when five trusts launched, raising £1.2bn.
Industry assets have also been on the decline, falling from the record £278bn reached last November to £265bn at the end of May 2022.
Stone added fee reductions have “continued to be a theme in 2022”.
So far 14 investment companies made adjustments to their fee structure, including slicing management fees, introducing tiered fees and abolishing performance fees.
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