Eaglet investment trust is to seek exposure to the private equity market for the first time through ...
Eaglet investment trust is to seek exposure to the private equity market for the first time through a just launched AIM-listed incubator fund, writes James Thorneley.
The Zoa investment company is aiming to raise £30m through a placing and public offering and Eaglet is to buy £7.5m worth of the shares. Zoa is to be managed by Zoa Asset Management (ZAM), a wholly owned subsidiary of Zoa PLC. ZAM has two directors Michael Frye and Peter Webb, manager of Eaglet.
Last week when the launch of the company was announced it was criticised over its initial NAV of 83p. This is partly the result of Zoa's 10 directors receiving a total of 6,893,790 shares at an issue price of 20p and thereby diluting the NAV.
Webb said: "We have reacted to the market and reduced the amount of shares directors will receive, which will increase the initial NAV.
It has to be remembered that other incubator funds initially started trading on much higher premiums."
As a result the NAV has risen to 93p per share. Eaglet's investment into Zoa is a natural progression for the trust, according to Webb. Presently it invests FTSE Fledgling and AIM stocks, which Webb regards as quasi-venture capital stocks.
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