The closed-ended investment trust, established to invest directly in a portfolio of infrastructure and property alternative assets and asset managers managing such alternative assets, is seeking to raise £200mln by way of an initial placing and share subscription at an issue price of 100p per ordinary share.
In addition, the group said it will establish a placing programme that will allow it to issue, in aggregate, up to 500mln ordinary shares and/or C shares, out of which the company can issue a maximum of 250mln ordinary shares under the Initial Issue.
The closing date for the subscription offer is 1pm on 12 February, while the intermediaries offer will close at 5pm on the same day, with Cantor acting as the sole bookrunner for the fundraising.
Final close for the placing will be 1pm on 13 February ahead of admission to trading on the LSE at 8am on 18 February.
Alan Pennell, the company’s chief financial officer, said investors will be able to subscribe through “AJ Bell, Equiniti, Hargreaves Lansdown, Interactive Investors, Saga Share Direct, Shareview and Selftrade” if they wish to take part.
Cabot Square Alternatives previously noted that its investment manager and investment adviser, Cabot Square Capital LLP and Cabot Square Alternatives Adviser LLP respectively, have identified an attractive pipeline of £500mln of investment opportunities with potential to scale to £1bn-plus and which are expected to enable the company to meet its intention to have substantially invested or committed the net IPO proceeds within 18 months of initial admission.
The group also said it has a target dividend yield of 5% per annum, based on the initial issue price, and aims to increase dividends progressively over time, with the target for the period from initial admission to 31 December 2020 to announce dividends of at least 3.0p per ordinary share in total.
In addition to delivering its target returns, the company will also target investment opportunities that can make a positive ESG (environmental, social and governance) impact.