Rutland closes vulture fund at £210m

The UK fund manager will make investments in established businesses with financial and commercial problems.

Rutland Fund Management has closed its first fund, The Rutland Fund, at £210m (E334m) to target companies that have seen better days.

The fund will be looking at UK middle market transactions which have valuations of up to £150m. It will invest £15m to £40m in companies where it sees opportunities to add value and boost shareholder value post-investment. The Rutland Trust invested £100m in the fund alongside other private equity investors.

Rutland Trust Plc is an investment trust which is managed by Rutland Fund Management Limited. The trust had net assets of £108.4m at 31 December 2000 compared to £113.8m in the six months to June 2000. It reported a pre-tax return of £1.7m for the second half of last year.

Rutland said in its announcement of preliminary results for the six months ended 31 December 2000: “With the worsening economic outlook Rutland Fund Management has seen a marked increase in the number of prospective opportunities which meet the investment criteria of The Rutland Fund and pricing expectations of vendors now appear more realistic.

“Following the closing of the Rutland Fund, the board believes that Rutland Trust is now well placed both financially and strategically to pursue its objective of delivering attractive cash returns to shareholders over the medium term.”