Investment firms raise £4bn in ‘difficult’ first half


Investment firms defied a tough market backdrop to raise £4bn in the first six months of the year, even as IPOs stalled.

The total raised via secondary fundraising fell short of the record £5.1bn in the first half of 2021, but was still the third highest sum in the first six months of a year, according to figures provided by the Association of Investment Companies.

In line with the trend of recent years, the renewable energy infrastructure sector leads the pack, raising £1.2bn over the period, followed by infrastructure (£621m) and property UK trade (£557 million).

On a sole proprietorship basis, International Public Partnerships, which sits in the infrastructure sector, achieved the largest fundraising at £326m. Rounding out the top three are Supermarket Reit, which raised £307m, and Renewable Infrastructure Group, which raised £277m.

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Industry assets fall to £265bn

AIC chief executive Richard Stone (pictured) said the figures represent “healthy fundraising” for existing investment firms during a volatile time.

“Rising inflation, tight labor markets and the war in Ukraine, with its impact on supply chains and fuel costs, have so far made this a difficult year for commodity markets. capital.”

Not a single new investment firm listed on the London Stock Exchange in the first half of the year, a stark contrast to the first half of 2021 when five trusts were launched raising £1.2bn.

Assets in the industry have also shrunk, from a record high of £278bn hit last November to £265bn at the end of May 2022.

Stone’s extra fee reductions “continued to be a theme in 2022.”

So far, 14 investment firms have made adjustments to their fee structure, including reducing management fees, introducing tiered fees and eliminating performance fees.

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