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UK trust to tear up performance fee structure after £60mn payday

Financial Times LogoFinancial Times1 mo ago

UK trust to tear up performance fee structure after £60mn payday

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About 60 per cent its portfolio companies have yet to turn a profit, although on average these start-ups have enough cash to see them through the next 14 months, the trust said.

It benefited from the boom in growth stocks during the economic rebound from Covid-19 last year, which trickled down to the valuations of its unquoted holdings as investors were eager to back tech stars at often lofty valuations.

The fees were based on a 20 per cent share of the company’s returns in net asset value terms above certain benchmark levels, similar to fees for private equity managers.


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Article Details

Author / Journalist: Joshua Oliver

Category: MarketsFinanceInvesting

Topics: Fees Year Stocks Investment Companies Trust Financial Growth Performance Managers

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-30, 13:55:44

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 4 minutes read

Article Length: 663 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 23106

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About Financial Times

Financial Times Logo

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 16 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 9h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

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Publisher ID: #3

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