To maximise capital growth by investing in funds specialising in unquoted investments, acquiring existing unquoted portfolios and participating directly in private placements. The Company's policy is to make unquoted investments, in general by subscribing for investments in new private equity funds ("Primary Investment") and by buying secondary interests in existing private equity funds ("Secondary Investment"), and from time to time to capitalise further on its fund investment activities by acquiring direct holdings in unquoted companies ("Co-investments"), usually either where a vendor is seeking to sell a combined portfolio of fund interests and direct holdings or where there is a private equity manager, well known to the Company's Manager, investing on substantially the same terms.
Management fee 1.5% p.a. on investment assets up to GBP150m, 1% p.a. on investment assets in excess. Commitment fee 0.5% p.a. on investment amounts committed but unpaid. Performance fee 5% of any increase in NAV over applicable high water mark plus the hurdle rate of 10%. Agreement terminable on 6 months notice.
The Funds main emphasis is on capital growth and to achieve this it invests in mainly unquoted investments. Therefore, the income achieved by the Fund is minimal and dividend growth is not a priority.