Star fund manager Neil Woodford has unveiled plans for a £200 million investment trust that will target start-up businesses.
Woodford, who quit Invesco Perpetual to set up his own venture last year, said he is expecting returns of about 10% a year from the Woodford Patient Capital Trust venture, which will raise money in a stock-market flotation in April.
It will initially be dominated by mid- and large-capitalisation listed, mature companies, but exposure to early-stage companies and early-growth companies is expected to gradually build. That process should take one to two years, he said in a statement.
“This is the missing component for many companies and the reason why great innovation hasn’t translated into commercial success for the UK economy,” he added.
The trust is eventually expected to have between 50 and 100 holdings and focus on fledgling companies in areas like biotechnology and alternative finance.
Woodford had £9.3 billion of assets under management at the end of January.
