Star manager Neil Woodford is launching the Woodford Patient Capital Trust via a £200m initial public offering (IPO). The trust will invest in early-growth companies, typically quoted; and quoted and unquoted early-stage companies, which are expected to have a "significant exposure to medical science".
Instead of charging an annual management fee, the investment trust will earn a performance fee which will be payable in ordinary shares, which Woodford Investment Management believes will further align its interests with shareholders.
It follows the launch last year of Mr Woodford's CF Woodford Equity Income (GB00BLRZQ513), which has posted strong performance and is a member of the IC Top 100 Funds.