Shares in Castelnau Group rose today as the UK investment company made its debut on the London Stock Exchange (LSE).
The company, which trades on the LSE’s Specialist Fund Segment, raised £53.1m ($72.9m) of new capital under its initial issue.
The market capitalisation at admission was £177.6m, but this had risen to around £191.7m by 1pm in London after shares nudged up 8% to 108p.
Castelnau has confirmed the initial portfolio will consist of investments in Dignity, Hornby, Phoenix SG and WLS International, as well as two ‘enabling’ businesses in Rawnet and Ocula Technologies.
It’s understood that Castelnau will target 10-15% per annum in excess of the return of the FTSE All-Share TR Index and a minimum NAV total return of 20%.
The stated aim of Castelnau is to “compound shareholders’ capital” at high rates of return by collecting businesses possessing a competitive advantage at attractive prices.
Phoenix Asset Management
Castelnau will be managed by Phoenix Asset Management Partners Limited, a specialist investment manager led by Gary Channon, its CEO and chief investment officer.
Phoenix manages approximately £1.3bn across three funds: the Phoenix UK Fund, Aurora Investment Trust plc, and the Huginn Fund.