The Schroder BSC Social Impact Trust has matched the amount raised for the British Opportunities Trust at IPO, bringing in £75m.
Schroders is the AIFM of the investment trust while Big Society Capital will be the investment manager targeting social impact investments that address issues such as homelessness, supporting people with learning disabilities and domestic abuse survivors, and improving access to services for physical and mental health.
Part of the net proceeds of the IPO, which was first announced in November, will be used to acquire seven assets from Big Society Capital.
At the end of November, Schroders British Opportunities scraped in £75m in an IPO that was targeting £250m. Schroder BSC Impact was targeting a more modest £100m.
Schroders now runs £668m in investment trusts that invest in UK private markets, based on the current net assets in the Schroder UK Public Private Trust of £518m. That figure would have been £868m if both recent launches had reached their IPO targets.
While Schroder BSC Impact and Schroder British Opportunities did not meet their IPO targets, they have fared better than other investment trusts targeting the UK with both Tellworth British Recovery & Growth and Buffettology Smaller Companies failing to get off the ground in the last few months.
Both planned IPOs were canned before the US presidential election result and the first positive vaccine trial from Pfizer and BioNTech buoyed investor sentiment.
Schroders global head of sustainable investment Andy Howard said: “This is a unique product which gives investors access to a diversified portfolio of private market impact investments through a London listed vehicle for the first time.
“In addition to its clear focus on social impact, the company seeks to provide an attractive and consistent return profile derived from investments with low correlation to equity market movements and that are frequently asset or government backed.”
Schroder BSC Social Impact chairwoman Susannah Nicklin said social issues were “understandably at the forefront of the minds of many investors”. “The company is able to provide vital capital to charities and social enterprises tackling many social challenges, from homelessness to domestic abuse.”
Schroder BSC Social Impact will be admitted to the London Stock Exchange next week.
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