Friends Ivory & Sime is to bring a traditionally institutional fund structure to the IFA market with a new venture capital investment trust.
The Public and Private Primary Capital, or 3PC, investment trust will open on Monday. It aims to raise up to £150m and will close on April 23 or earlier if it reaches its target subscription.
The fund will have similar characteristics to venture capital limited partnerships which are normally only available to institutional investors.
It will aim to return a minimum of 99.9 per cent of shareholders' capital as well as a total return of 7.5 per cent per year.
The management team will then take 20 per cent of the fund's growth after shareholders have received their targeted return while the remaining 80 per cent will be shared between investors. If the target return has not been paid by May 2007, the fund will be liquidated and the assets shared between the investors.
The fund, which will be managed by Bill Brown, will focus on
entrepreneurial companies in the biotech, technology and telecoms sectors.
Unlike most investment trusts, the fund will offer commission. Initial commission is 3 per cent, with 0.5 per cent trail. The annual management charge is 1.25 per cent of gross assets.