Investment company Cabot Square Alternatives is plotting a £200m listing on the London Stock Exchange.
As well as raising £200m through the initial placing, the investment trust also outlined plans for a share placing programme worth up to £500m.
The company will invest in property and infrastructure (including renewable energy), as well as specialist debt secured against these. Investments will mainly focus on the UK and Europe.
Cabot Square is targeting a NAV return of 8-10% once substantially invested. It said that around £40m in non-binding commitments has already been secured from three investors.
The investment trust will be managed by Cabot Square Capital, which counts MedicX among its previous investments.
Cabot Square said it identified a “shortage of capital and a lack of expertise in the market of investing in infrastructure and property investments with a value between £1m and £25m, which can result in attractive risk adjusted returns for those willing and able to invest in this range”.
Keith Maddin, fund manager and partner at Cabot Square Capital, said: “ALTS represents a new model for investors to access returns from investing directly in attractive infrastructure and property alternative assets, as well as share in the value creation of specialist alternative asset managers by building alternative asset platforms.
“In addition to delivering target returns we will also focus investment on making a positive ESG impact.”
Asset classes in the company’s pipeline include:
• Subsidy-free solar in Spain
• Offshore support vessels for the wind industry
• Electrical charging points
• Shared ownership accommodation
• Care homes
• Schools.
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