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Woodford Investment Management to raise £200m through new trust

Monday 9th February 2015

Woodford Investment Management LLP has announced announces its intention to launch Woodford Patient Capital Trust plc. 
The Trust will target £200 million of funds by means of a placing and offer for subscription of ordinary shares. 
The new branch of Woodford Investment – the firm launched by star fund manager Neil Woodford last year - will invest in a diversified portfolio consisting predominantly of UK companies, both quoted and unquoted including mid and large-capitalisation listed, mature companies, early growth companies and early-stage companies. 
It will seek admission of its ordinary shares to the premium segment of the official list of the UK Listing Authority and to trading on the main market of the London Stock Exchange.
The portfolio will represent a mix of Woodford’s highest conviction blue-chip ideas together with exposure to early-stage and early-growth companies.
The Trust aims to deliver a return in excess of 10 per cent. per annum over the longer term. Meanwhile, the portfolio is expected to consist of 50-100 holdings with exposure to early-stage and early-growth companies growing over time.
The team behind the trust – which has been investing in early-stage companies and early-growth companies for more than a decade - says it is passionate about investing in early-stage and early-growth companies which it believes are unloved sectors, offering significant untapped opportunities that are much less influenced by wider market sentiment. 
 Neil Woodford commented: “Patient capital is the missing component for many companies and the reason why great innovation hasn’t translated into commercial success for the UK economy.
“Patient capital investors work closely with early-stage businesses and help nurture them to achieve commercial success. It takes involvement, flexibility and above all, it takes time.”    
Commenting on the announcement, Mark Dampier, Head of Research at Hargreaves Lansdown added: “Neil Woodford has an impressive track record of supporting new fledgling companies, and nurturing them to success with his long term investment approach. He already holds some within the CF Woodford Equity Income fund, and this new Investment Trust will allow him greater freedom to uncover the great companies of tomorrow.” 
“Those investors who wish to invest in this fund should similarly take a long term view, by which I mean at least 10 years, and should make sure they study the prospectus carefully before investing.”
The publication of the prospectus is expected later this month, with the results of the Issue and the admission of and dealings in ordinary shares due in April. 
It has also been confirmed that Winterflood Securities Limited is acting as sole sponsor, financial adviser and bookrunner to the Woodford Patient Capital Trust plc.

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