Baillie Gifford’s Schiehallion Fund is targeting a $500 million-plus raise through a C-share issue.

The fund is dedicated to making investments in “later stage private businesses that the company considers to have transformational growth potential and to have the potential to become publicly traded.”

In a stock exchange statement this week, Schiehallion Fund published the prospectus in connection with the proposed placing of C shares.

“Further to the announcement made by The Schiehallion Fund Limited on 19 March 2021 the board is pleased to announce the publication today of a prospectus in connection with a placing of C shares of no par value at an issue price of US$1.00 per C Share and admission of the C Shares to trading on the Specialist Fund Segment.

“The placing is targeting an issue of in excess of 500 million C Shares and the net placing proceeds will be used to acquire investments in accordance with the company’s investment objective, being to generate capital growth for investors through making long-term minority investments in later stage private businesses that the company considers to have transformational growth potential and to have the potential to become publicly traded.”

Winterflood Securities Limited is acting as Sole UK Placing Agent and Bookrunner in connection with the placing.

When it announced its results for the year to January 31, 2021, on March 19, Schiehallion said: “When the company was launched, raising gross proceeds of US$477 million, the board said it would be reasonable to expect that the company would be two-thirds invested within the first two years.

“The company has exceeded that milestone, with 87.0% of shareholders’ funds invested in 27 private companies and two private companies that are now public as at the end of January 2021 …

“As the company is now substantially invested, the company is seeking to raise additional capital, by way of a C share issue, which provides investors with the opportunity to subscribe for new shares whilst insulating existing shareholders from the dilutive cash drag effects of deploying additional capital into private companies which will take time to deploy.

“On 18 March 2021, in connection with this proposed capital raising, shareholders approved the issuance of up to 700 million C shares on a non-pre-emptive basis.

“This authority expires on 31 December 2021 …”