OverviewThe value of investments and any income from them may go down as well as up and you or your client may not get back the amount originally invested.
The Schiehallion Fund Limited seeks to generate capital growth for investors through 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.
About the Fund
The Company will seek to invest in private businesses which it considers have the potential to become admitted to trading on a public stock exchange. Those investments will typically take the form of equity and equity-related instruments (which may include, without limitation, preference shares, convertible debt instruments, equity-related and equity-linked notes and warrants) issued by investee companies.
The Company will only invest in private businesses that are considered to have some or all of the following features:
• the potential to grow revenue and earnings multiple fold over the long term;
• scalable business models that should enable those businesses to grow into their opportunity;
• robust competitive advantages;
• exceptional management teams;
• an entry price which significantly undervalues the long term opportunity for the business; and
• the ambition and ability to become standalone public companies.
Investee companies may be from any sector and any geography. While there are no specific limits placed on exposure to any one sector, the Company will at all times seek to invest and manage the portfolio in a manner consistent with spreading investment risk.
The Schiehallion Fund Limited is a non-cellular closed-ended investment company limited by shares, incorporated in Guernsey with registered number 65915. Registered office: First Floor, Albert House, South Esplanade, St Peter Port, Guernsey, Channel Islands, GY1 1AJ.
Meet the Fund ManagersPeter Singlehurst - Manager
Peter graduated with a BA in Philosophy, Politics and Economics in 2008, and a MA in Philosophy in 2009 from Durham University. He joined Baillie Gifford in 2010 and initially spent time working in our Credit and UK Equity teams, before moving to our Global Discovery team, which focuses on identifying innovative and rapidly growing smaller companies around the world. He moved to our Long Term Global Growth team in 2014 at a time when the team was starting to invest in more unlisted companies and became the first investor at Baillie Gifford to work exclusively on private company research. In September 2017, Peter moved to lead a newly formed Unlisted Equities team and is focussed on identifying high growth, late-stage private companies.Mark Urquhart - Deputy Manager
Mark is a Senior Investment Manager in our Long Term Global Growth Team, a strategy which he co-founded in 2003. Mark joined Baillie Gifford in 1996, initially working as an Investment Analyst and Manager in the US, UK and Japanese Equities Teams. He became a Partner in 2004. Mark graduated BA in Philosophy, Politics and Economics from the University of Oxford in 1992 and spent a year at Harvard as a Kennedy Scholar in 1993 before completing a PhD in Politics at the University of Edinburgh in 1996.Robert Natzler - Deputy Manager
Robert is a member of the Unlisted Equities Team at Baillie Gifford.
He joined the firm in 2015, and worked on our Emerging Markets and UK Equity Teams before moving to Long Term Global Growth. There he focused on finding stocks for a set of highly concentrated long-term international growth portfolios. He also began working on private companies, in the context of both private founding rounds and existing holdings approaching IPO.
In 2018 he moved to our Unlisted Equities Team to work full-time on identifying high growth late-stage private companies. He has led research on private companies including Tanium, Niantic, Sana, Graphcore and Flix Mobility, as well as doing follow-up work on pre-existing portfolio holdings. He is working to develop a best-in-class research culture and company support strategy on the team.
Robert graduated with a BA (Hons) in Philosophy, Politics and Economics from the University of Oxford in 2014.
Actual Investors see people’s aspirations.
Not assets under management.
Meet the DirectorsDr Linda Yueh - Chairperson
Dr Linda Yueh was appointed a Director and Chairperson on 4 January 2019 and is also Chairperson of the Nomination Committee. Dr Linda Yueh is a non-executive director of Rentokil Initial plc, a constituent of the FTSE 100, where she is a member of the audit, remuneration and nomination committees. She is also a non-executive director of Fidelity China Special Situations plc, a constituent of the FTSE 250, where she is a member of the management engagement, remuneration and nomination committees. Dr Yueh is the chair of The Royal Commonwealth Society as well as a trustee of Malaria No More UK and the Coutts Foundation, where she is the chair-designate of the finance and investment sub-committee. She was a non-executive director of the following FTSE companies: Baillie Gifford’s flagship Scottish Mortgage Investment Trust PLC and JPMorgan Asian Investment Trust plc. Dr Yueh is a fellow in economics at St Edmund Hall, University of Oxford and adjunct professor of economics at London Business School. She is also visiting professor at LSE IDEAS and was visiting professor of economics at Peking University.John Mackie CBE - Director
Mr Mackie was appointed a Director on 4 January 2019. Following an early career in retail management, Mr Mackie went to the University of Glasgow as a mature student and then qualified as a chartered accountant with Arthur Andersen & Co in Glasgow. He then spent five years with 3i Group before joining Morgan Grenfell Private Equity in 1990 as a founder director. Mr Mackie was made a director of Morgan Grenfell & Co in 1993. From 2000 to 2006, Mr Mackie was chief executive of the British Venture Capital Association and was a partner in Parallel Private Equity LLP until 2011. He was until 2013 chairman of Henderson Private Equity Investment Trust plc, until 2014 a director of Baronsmead VCT plc and until September 2018 the senior independent director at Mithras Investment Trust plc. Mr Mackie is currently a partner in Mithras Capital Partners LLP and chairman of the advisory boards at Amadeus and Angels Seed Fund and Amadeus IV Early Stage Fund.Trudi Clark - Director
Ms Clark was appointed a Director on 4 January 2019 and is also Chairperson of the Audit Committee. Ms Clark graduated in business studies and qualified as a chartered accountant with Robson Rhodes in Birmingham before moving to Guernsey in 1987. In Guernsey she joined KPMG, where she was responsible for an audit portfolio including some of the major financial institutions in Guernsey. After 10 years in public practice, Ms Clark was recruited by the Bank of Bermuda as head of European internal audit, later moving into corporate banking. In 1995 she joined Schroders in the Channel Islands as CFO and was promoted in 2000 to banking director and in 2003 to managing director. From 2006 to 2009, Ms Clark established a family office, specialising in alternative investments. In recent years she has returned to public practice specialising in corporate restructuring services, establishing the Guernsey practice of David Rubin & Partners Limited. Since 2018, Ms Clark has concentrated on a portfolio of non-executive director appointments for companies, both listed and non-listed, investing in property, private equity and other assets. Ms Clark holds a personal fiduciary licence issued by the GFSC and acts as non-executive director and consultant to one high net worth family.
The Company's investment objective is to generate capital growth for investors through 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.
The Company will seek to invest in private businesses which it considers have the potential to become admitted to trading on a public stock exchange. Those investments will typically take the form of equity and equity-related instruments (which may include, without limitation, preference shares, convertible debt instruments, equity-related and equity-linked notes and warrants) issued by Investee Companies.
In making its initial investment in a business, the Company will only invest in private businesses that are considered to have some or all of the following features:
- the potential to grow revenue and earnings multiple fold over the long term;
- scalable business models that should enable those businesses to grow into their opportunity;
- robust competitive advantages;
- exceptional management teams;
- an entry price which significantly undervalues the long-term opportunity for the business; and
- the ambition and ability to become standalone public companies.
Investee companies may be from any sector and any geography [(save as set out below in the description of investment restrictions)]. While there are no specific limits placed on exposure to any one sector, the Company will at all times seek to invest and manage the portfolio in a manner consistent with spreading investment risk.
With prior approval of the Board, the Company may permit the use of derivatives for the purpose of currency hedging, though it currently does not expect to do so. Save for this and for investments made using equity-related instruments, as described above, the Company may not engage in derivative transactions for any purpose.
The Board does not intend to use structural gearing with a view to enhancing equity returns on investments. The Company may employ gearing on a short-term basis for the purpose of bridging investments and general working capital purposes. The Company may in aggregate borrow amounts equalling up to 10 per cent. of NAV, calculated at the time of drawdown.
The Company will be subject to the following investment restrictions:
- an investee company must be a private investee company at the time of the Company's initial investment in that investee company. The Company may, however, make subsequent investments in the investee company, even if the investee company has been admitted to trading on a public stock exchange in the period since the Company's initial investment;
- an investee company must have a value of at least US$500 million at the time of the Company's initial investment in the investee company. This restriction will not apply to the Company's subsequent investments in the investee company, if any;
- the Company may not make an initial investment in an investee company which exceeds in value 10 per cent. (calculated at the time of investment) of the most recently published NAV (save to the extent that breach of this 10 per cent. limit is due to a change in the value of the Company's invested assets or currency fluctuations from the time of the Company's firm commitment to make the investment to the time of investment);
- the Company may not make any investment in a private investee company that would cause the value of the Company's holding in that private investee company to exceed 19.9 per cent. (calculated at the time of investment) of the most recently published NAV; and
- the Company may not make any initial investment in an investee company that would cause the Company's holding in that investee company to exceed 20 per cent. (calculated at the time of investment) of the total issued share capital of the investee company.
A reference to the value of assets of the Company (including investee companies) referred to in the restrictions above shall be to value as determined in accordance with the Company's valuation policy from time to time.
The Company does not currently expect the portfolio to be majority invested in public investee companies at any point in time, but it has not set a limit on the percentage of the portfolio which can be invested in public investee companies at a given time.
It is intended that the Company will, subsequent to the initial investment period, be substantially invested in normal market conditions. However, the Company may at any time hold overnight or term deposits or invest on a temporary basis in a range of cash equivalent instruments such as US Treasury Bills or money market funds. There is no restriction on the amount of cash or cash equivalent instruments that the Company may hold.