British fund manager Schroders has unveiled plans to launch a new investment trust, which will invest in the growth of businesses in the UK.
The trust will support both public as well as private businesses.
The aim is to support UK employment amid the current challenging market conditions caused by Covis-19 and also after that.
Schroders is planning to raise £250m through an IPO in anticipation of the launch of the trust.
The trust will target “high-quality, small and mid-sized UK companies” having sustainable business models.
It will seek to offer long-term total returns.
The trust will be run by Schroders’ head of equities Rory Bateman and head of UK and European private equity Tim Creed.
Creed is co-manager of the Schroder UK Public Private Trust.
Schroders head of equities Rory Bateman said: “This is a once-in-a-generation opportunity to invest in the future of British business and produce substantial returns while making a positive impact.
“The companies that require funding are often too large to be the focus of government initiatives, but too small to have the necessary impact with banks or credit markets.
“The current level of UK government debt-driven support is unsustainable and as support comes to an end, we believe many high-quality UK growth businesses will require an injection of ‘fresh’ equity to grow and succeed through the pandemic and beyond.”
Last year, Schroders took over the management of crisis-hit Woodford Patient Capital Trust (WPCT).
WPCT was then renamed to Schroder UK Public Private Trust.