Monday 20 March 2017 2:12 pm

Investment manager Downing plans £100m float to launch new micro-cap trust

An investment manager has announced plans to raise £100m through a fund float on the London Stock Exchange.

Asset management firm Downing today announced plans to launch Downing Strategic Micro-Cap Investment Trust in May through a listing on the main market.

The company will target investments in publicly-quoted UK companies with market capitalisations of less than £150m.

Read more: It looks like Brewdog's about to land a big new investor (and much more)

It will aim for between 12 and 18 investments and target a compound return of 15 per cent each year in the long term.

Downing, which was established in 1986, invests in companies through venture capital, private equity and public equity. It manages more than £800m of funds.

The firm is being advised on the initial public offering (IPO), due for 9 May, by Stockdale Securities.

Read more: London IPO, New York or sale? Sources say Misys is keeping its options open

Downing fund manager Judith MacKenzie said: “We believe that there are attractive investment opportunities within the micro-cap space for the experienced and diligent investment manager, looking to invest for the longer term, who can devote the necessary time to understanding a business and its market.

“By applying a private equity approach to public equity investing, we aim to identify such opportunities within this space.”