Alliance Trust to shut down private equity unit

City A.M. Reporter
The £3.7bn Alliance Trust, which recently came under attack from activist hedge fund Laxey Partners, plans to shut down its private equity unit to focus on its stock and bond investments.

The 123-year-old investment company, which will drop out of the FTSE 100 later this month, said in a statement that it will shut Alliance Trust Equity Partners, which runs £110m in funds and direct investments and employs six people.

"We are focusing on delivering on our investment performance and that's the reason we're closing the private equity business," a spokesman said.

Last month Isle of Man-based Laxey said in letters to the trust and to shareholders that Alliance should set up a mechanism to limit its shares' discount to net asset value and change the voting process in its savings scheme.