Dexion Equity Alternative Limited has raised GBP 42.25 million in its recent placing, open offer and offer for subscription of C shares.
The Issue, which was sponsored by Hoare Govett Limited (a member of the ABN AMRO group), attracted a wide range of UK investors including private wealth management groups, insurance companies, pension funds and discretionary asset managers.
In total, fifteen new institutional investors subscribed for C shares pursuant to the issue, significantly broadening the company's shareholder base. With aggregate net assets in excess of GBP130 million, Dexion Equity Alternative, which is managed on behalf of Dexion Capital by K2 Investment Partners, LP, is now the third largest London-listed fund of hedge funds.
It is expected that the net proceeds of the Issue will be substantially invested, or committed to be invested, by 1 June 2005.
The Company's C Shares have been admitted to the official list and dealings have commenced on the London Stock Exchange.
"We are very pleased with the results of this issue," said Robin Bowie, CEO of Dexion Capital plc. "Dexion Equity is now the third largest London-listed fund of hedge funds with net assets in excess of GBP 130 million, and we are delighted to have introduced 15 new institutional investors to the company. Together with ABN AMRO, we have now raised GBP 450 million over the past two years which certainly vindicates our strategy of selecting very high quality fund of hedge funds managers."
This is the second fundraising for Dexion Equity Alternative Limited following its successful launch in April 2004 where net proceeds of GBP 83.5 million were raised through an institutional placing. Trading in the Company's ordinary shares commenced on the London Stock Exchange on 1 April 2004.
Background notes: Dexion Equity Alternative is a Guernsey domiciled, closed-ended fund of hedge funds listed on the London Stock Exchange. The Company's investment objective is to target US dollar annualised returns of 10 per cent to 15 per cent over any five year period with low correlation to traditional equity benchmarks and an annualised volatility target of less than 8 per cent, whilst preserving capital in all market conditions.
In the period from 1 April 2004 to 28 February 2005, the Net Asset Value of the Company had appreciated at an annualised rate of 8.93 per cent (in sterling terms). The company's shares have traded at an average premium to net asset value of 3.9% over the same period with a current mid-market price of 107.75p, up 7.75 per cent since launch.