1. Overview

    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.

    The 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.
  2. 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.

  3. Meet the Fund Managers

  4. Actual Investors see people’s aspirations. Not assets under management.
    Find out more
  5. Meet the Directors

    Dr 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 Yueh is a non-executive director of Rentokil Initial PLC and SEGRO PLC, constituents 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, audit, and nomination and remuneration 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 of the audit, finance and investment 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 the LSE and was visiting professor of economics at Peking University. Dr Yueh is an Adviser to the UK Board of Trade and member of the Independent Review Panel on Ring-fencing and Proprietary Trading for the UK government.

    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.

  6. Objective

    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.

  7. Investment Policy

    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.

  8. Risks

    The value of shares in the Company, and any income from them, can fall as well as rise and investors may not get back the amount invested. The specific risks associated with the Company include: 

    Private Companies

    The Company invests in private companies. These assets may be more difficult to sell, so changes in their prices may be greater.  

    Liquidity

    Market values for investments which have become difficult to trade may not be readily available and there can be no assurance that any value assigned to such investments will accurately reflect the price the Company might receive upon their sale. 

    Overseas Investment

    The Company invests in overseas businesses. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.  

    Emerging Markets

    The Company invests in emerging markets where difficulties in dealing, settlement and custody could arise, resulting in a negative impact on the value of your investment. 

    Concentration

    The Company’s risk is increased as it holds fewer investments than a typical investment trust or fund and the effect of this, together with its long term approach to investment, could result in large movements in the share price. 

    Discount or premium

    Share prices may either be below (at a discount) or above (at a premium) the net asset value (NAV). The Trust Company may issue new shares when the price is at a premium which will reduce the share price. Shares bought at a premium can therefore quickly lose value. 

    Tax Rates

    You should note that tax rates and reliefs may change at any time and their value depends on your circumstances.

    Regulation

    The Company is listed on the Specialist Fund Segment of the Main Market of the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority.

    Information subject to change

    The information and opinions expressed within this website are subject to change without notice.

    Not Investment Advice

    This information has been issued and approved by Baillie Gifford & Co Limited and does not in any way constitute investment advice.

    Additional Risk Warnings specific to Schiehallion Fund - C Shares

    Convertible share risk

    When converting to Ordinary shares you are effectively selling your Convertible shares at their price at that date and using the proceeds to buy Ordinary shares. We expect the Ordinary and Convertible shares to have different prices, which means you would receive a different number of shares upon conversion. This has no impact on how much money you have invested.

    Deploying proceeds

    The Company may suffer a delay in deploying the proceeds of the Placing.