London Stock Exchange said listed funds and Real Estate Investment Trusts (REITs) raised £5billion initial and follow-on capital in first-half (H1) of 2017. London listed funds have also raised £3.6 billion in further capital in the first half of the year. Also, nine funds Initial Public Offering (IPOs) listed on its markets in the review period raised £1.4billion.
It remains attractive market for international fund managers, particularly from the United States. Since the start of the year, US fund managers have listed funds worth over £3.5 billion in London.
Most notable is the increasing diversified nature of the funds, from microcap, supporting SMEs, and real estate specific funds for social housing, private rented sector and student property, to life sciences debt funds, demonstrating London Stock Exchange’s role in funding all sectors of the economy.
A landmark for the UK fund market in 2017, Pershing Square Holdings, a close-ended investment company, successfully listed its £2.9 billion fund, transferring its existing trading line from Amsterdam.
Darko Hajdukovic, Head of Analytics, Fixed Income and Funds, Primary Markets London Stock Exchange Group: “This year’s surge in fund listings demonstrates London’s ability to finance a variety of issuers from around the world, using diverse and often innovative strategies. Particularly encouraging is the success of US-based fund managers accessing London’s deep pool of international capital, with over £3.5 billion listed in London by US fund managers to date in 2017.
“A number of this year’s funds have raised capital to invest in new asset classes, demonstrating our role in funding all sectors of the real economy. BioPharma Credit raised over £600 million, becoming the first London listed fund to specialise in debt financing for the life sciences industry.”
Notable listings in H1 2017 include: BioPharma Credit, the first London listed fund specialising in debt financing for life sciences industry, floating on the Specialist Fund Segment of the Main Market; Pershing Square Holdings, a close-ended investment company, successfully listing its £2.9 billion fund, which was originally listed in Amsterdam; PRS REIT, the first listed fund to focus solely on Private Rented Sector properties, raising £250 million and Impact Healthcare Trust raising £160 million to invest in a portfolio of care homes.
461 funds are quoted on London Stock Exchange. The largest fund by money raised to date in 2017 is BioPharma Credit plc, which raised £608 million in March.