Buffettology seeks to raise at least £100m through flotation on London Stock Exchange

An investment trust with an office in Leeds has revealed that it plans to raise a minimum of £100m by floating on the London Stock Exchange.

The investment trust's office is in Leeds
The investment trust's office is in Leeds

Buffettology Smaller Companies Investment Trust has announced its intention to launch an initial public offering and to trade on the main market of the London Stock Exchange plc.

In a statement, the company said: "Buffettology is seeking to raise a minimum of £100 million via an initial placing, an offer for subscription and an intermediaries offer of redeemable ordinary shares of £0.01 each in the capital of the company. A 12 month placing programme will also be launched pursuant to a prospectus."

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Sanford DeLand will be the investment manager to the company, which is led by Keith Ashworth-Lord, the CIO of Sanford Deland Asset Management Limited.

Sanford DeLand manages around £1.4 billion across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit Fund.

The company will predominantly invest in the securities of companies listed or traded in the United Kingdom with a portfolio consisting of 30 to 50 companies with market capitalisations at the time of investing ranging from £20m to £500m.

Alex Brotherston, CEO of SDL Limited commented: "We are delighted to be increasing the options for investors to access Sanford DeLand investment expertise with the launch of the Buffettology Smaller Companies Investment Trust."

"The Sanford DeLand investment team collectively has many decades of experience of applying the principles of business perspective investing.

"The team will build on experience gained from running the UK Buffettology and Free Spirit Funds, combined with embedded knowledge in the smaller quoted company market, which will provide the necessary insight and expertise to take advantage of this opportunity for the company's shareholders."

Keith Ashworth-Lord, CIO, SDL Limited added: "We believe that the UK small cap market offers excellent investment opportunities to experienced managers who know what to look for and have the freedom to take a long-term view. Our business perspective investing approach is ripe for application to smaller companies and presents an opportunity to deliver superior returns for our shareholders, over the long-term.

"The structure of a closed-ended investment trust, rather than an open-ended fund, means that many of the liquidity concerns over investment in smaller quoted companies can be addressed. The investment trust structure, and permanency of capital, should ensure that we can take a genuinely long-term investment perspective."

The company's sole physical office is in Leeds.