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L&G to revamp trust for buyouts

John Willcock
Friday 12 August 1994 18:02 EDT
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LEGAL & GENERAL is buying a majority stake in Group Development Capital Trust to transform the investment trust into a vehicle for financing buyouts and buy-ins, writes John Willcock.

The trust is valued at about pounds 12m and provides development capital to unquoted companies.

L&G Ventures will buy up to 75 per cent of Group Development's shares at 52.93p a share. Institutions and the trust's existing shareholders will also be able to buy shares.

The trust's management decided earlier this year to wind it down and much of the fund now consists of cash.

L&G, which already held 26 per cent, then decided that if the trust were to be revamped with a new ownership and investment policy it would complement L&G's existing Mithras mezzanine finance fund. It will invest in equities issued by companies that have emerged from buyouts and buy-ins and a quarter of gross assets will be invested in unquoted securities.

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