TwentyFour Asset Management is seeking to raise up to £200 million for its latest launch, a closed-end income fund.
If its flotation is successful, fixed income specialist TwentyFour will target a net total return of 7% to 10% by investing in a diversified portfolio of European and UK asset backed securities.
The TwentyFour Income fund has a dividend target of 6p per annum, payable annually, and the pay out to shareholders during the vehicle's first year is expected to be around 5p.
According to its prospectus, fund manager TwentyFour will hunt for suitable investments principally in the secondary market, snapping up no more than 50 portfolio assets once the fund is fully invested, a process expected to take three months.
TwentyFour currently has £1.3 billion in assets under management, and according to broker Numis Securities it is hoping to raise between £100 million and £200 million via its latest launch.