MCICL is OMGI's first dedicated private equity fund and also its first foray into the investment trust world. It will be co-managed by mid-cap and small-cap specialist Richard Watts (pictured) and Nick Williamson.
The trust will typically hold between seven to 15 investments, with net proceeds from the IPO expected to be substantially deployed within six to nine months of admission.
The company will levy an ongoing management fee of 0.5% per annum of its net asset value (with no fee on uninvested cash until 90% of IPO proceeds are deployed).
There will also be a performance fee of 20% of returns in excess of 8% per annum, compounding hurdle with a high watermark.
OMGI believes that private markets represent an attractive investment opportunity.
'With many businesses choosing to stay private for longer, the market is growing in significance and the opportunity for investment in high-growth, pre-IPO companies is increasingly compelling,' it said.
The company will look to make private investments in companies where the valuation appears attractive, particularly against a listed market background. It noted that these businesses are typically at an advanced stage of private ownership and beginning to consider an IPO.
Commenting on the launch, Watts said: 'We believe this launch represents an exciting opportunity for investors to gain exposure to a high-growth area of the market that is typically difficult to access.
'With multiple investment opportunities across a range of evolving sectors, we believe there is an excellent opportunity to generate attractive capital returns for our investors by backing good management teams to continue to build great businesses.'
Williamson added: Utilising our proven and rigorous process, we believe we are extremely well positioned to exploit the compelling investment opportunities available in this highly attractive but under allocated area of the market. As a desk we have considerable experience in determining listed valuations across a wide spectrum of sectors.
'Further, we believe our scale makes us an attractive crossover investor for private companies at this pivotal stage in their development.'
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