On the go: Long Term Assets Limited, led by Pension Insurance Corporation founder Edi Truell, has announced its intention to list its shares on the London Stock Exchange.
The Guernsey investment company plans to admit its shares to trading on the specialist fund segment of the main market of the exchange.
It will then launch a 12-month placing programme, aimed in particular at UK pension funds and other long-term savers.
LTA aims to generate long-term income and capital growth by investing globally in infrastructure, sustainable resources, private equity, real estate private debt and other private market investments.
It targets a low 0.55 per cent a year management fee, and typically a 7-8 per cent a year hurdle rate of return, depending on the asset class, before performance fees kick in.
For inflation protection it will allocate to inflation-correlated assets, and maintain an ultra-long-term investment horizon.
LTA has been designed to be particularly attractive to pension funds, as a vehicle into which to inject their illiquid assets in exchange for publicly traded shares.
It has a core focus on being compliant with and aligned to the Climate Group’s NetPositive operational principles, and positive impact investing is fundamental to LTA’s investment process.
Initial assets are expected to include major renewable energy infrastructure investments, a Swiss medical rehabilitation centre, a leading UK fibre optic and telecoms installation, Telent — an operation and maintenance firm, and the design and manufacture of cell and gene therapy viral vectors, through the company ViroCell.
The portfolio of positive impact investments comprises disruptive companies, sustainable business models and high-growth sectors that are central to the ‘new economy’, its announcement said.
The LTA board is chaired by Michelle McGregor-Smith, the former chief executive and chief investment officer of the £27bn British Airways Pension Scheme.
McGregor-Smith said: “Across its strategies for post-Covid recovery, post-Brexit 'levelling up' and net zero, vast investment sits at the heart of this government’s vision for a British renaissance.
"Long Term Assets stands at the ready to help address the shortfall in capital required to realise government’s ambition to pool billions into a new generation of world-leading British infrastructure and businesses.”
