New fund to invest in under-performing property companies floats on AIM
25 February 2008
The investment funds team at business law firm LG has advised Terra Catalyst Fund (“Terra Catalyst”) on its admission to AIM. Terra Catalyst raised in excess of £116 million in a combination of cash and stock swaps.
Terra Catalyst is a newly incorporated Cayman company established to invest in under-performing listed property companies and funds in Europe. It's objective is to seek to identify undervalued securities and actively seek to close the valuation gap between the value at which the security is trading and its intrinsic value.
Terra Catalyst has appointed activist investment manager Laxey Partners Ltd to handle its investment strategy. The stocks swapped in as part of the fund raising were those identified as being potential portfolio investments in line with Terra Catalyst’s investment policy.
The deal constitutes the first transaction by LG for new client Laxey Partners. The LG team advising Terra Catalyst consisted of corporate finance partner Nick Heather and corporate associates John Reed and Kristian Rogers.
Nick Heather said: “We are delighted to have completed out first deal with Laxey Partners who are such a well known name in the asset management and activist investment fund sector. This was a tremendous fund raising in light of the prevailing market conditions and shows the confidence of investors in Laxey Partners' successful track record in this area and the attractiveness of this product in the current market place."
"The launch of Terra Catalyst will be one of the biggest fund raises on AIM so far this year. It helps to further consolidate the strong reputation of our funds group, particularly in the alternative asset sector, and confirms our continuing involvement in the biggest and most high profile AIM transactions,” he added.
The nominated adviser and broker was Fairfax I.S. Plc who was represented by Travers Smith.
Note to editors
- LG advises entrepreneurial and growth market clients seeking to raise capital for their business ventures. It has advised on over 250 AIM transactions raising more than £3.6 billion in new funds.
- LG is the top AIM legal adviser and top adviser to the Financial sector by client market capitalisation, according to the latest Hemscott AIM Advisers Rankings Guide.
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Nick Heather
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