The trust invests globally in a range of strategies including distressed assets, initial public offerings, leveraged and management buy-outs, and venture capital. It is managed by Hans Markvoort.
Edward Cartwright, the firm’s head of listed investment company business development, says the listing will increase liquidity and broaden the vehicle’s shareholder base.
The fund will maintain its corporate structure but will have a dual listing of its shares in Zurich and London. Castle Private Equity invests in 100 partnerships and has almost $500m (£300m) of assets under management.
The trust’s discount to net asset value is significantly larger than its London peer group, which is on an average discount of 30%.
“Retail demand for these products comes and goes,” Cartwright says. “In the past, we were trading at a premium, now we are trading at a discount.”
However, he says he is seeing growing interest in this type of investment in Britain. “This [listing] should create an investment company that is better suited to serve the needs of its investors,” he says.
The fund’s total expense ratio will be disclosed at the time of the London listing. There is no minimum investment. LGT Capital Partners estimates the cost of the listing to be between $200,000 and $350,000.
The group runs two other listed, closed-ended funds—Castle Asia Alternative and Castle Alternative Invest.
