Apr 28, 2021 – 9.32pm
Local investment house Salter Brothers is bringing back the LIC.
Salter Brothers co-founder and chief executive Robert Salter.
Street Talk understands the fund manager has drafted in stockbroker Ord Minnett to help it float a $100 million-odd listed investment company that will tip money into early-stage/emerging businesses.
Ords is trying to raise $20 million for Salter Brothers Emerging Companies Ltd at $1 a share and would start taking bids from mid-May, according to terms sent to potential investors.
The vehicle would invest in between 25 and 35 listed and unlisted companies, with sub-$500 million market capitalisations, and planned to hold onto the investments for at least five years.
Investors were told the LIC would have holdings worth about $100 million upon listing, and the investment strategy would be managed by Salter Brothers Funds Management.
Salter Brothers is run by hotel tycoons Paul and Robert Salter. It has about $2 billion in assets under management and is best known in the market for its property, credit and private equity funds.
The raising will be a good test of investor appetite for new LICs, which have fallen out of fashion in the past couple of years – and been the cause of numerous activist shareholder campaigns.
The Salter Brothers LIC is expected to start trading on the ASX in early June.