Verition backs River UK Micro Cap liquidity proposal on London market
River UK Micro Cap Limited is moving to give shareholders a potential exit route as it seeks to address the persistent discount in its share price. The proposal would offer liquidity for up to 50% of the company’s issued share capital while keeping Liontrust as investment manager at a reduced annual fee.
Highlights
- Verition Fund Management, holding about 13% of River UK Micro Cap Limited, supports the board’s proposal for a shareholder exit plan based on net asset value minus costs.
- Under the proposal, Liontrust would remain as investment manager, and the management fee would drop to 0.35% of net asset value per year.
- Verition's approval signals significant shareholder backing as the company addresses its long-standing share price discount and liquidity concerns.
Shareholder exit plan and fund terms
As reported by London Stock Exchange, Verition Fund Management and associated parties, which hold about 13% of River UK Micro Cap Limited, support the board’s proposal to provide a realisation opportunity for shareholders. The plan would allow participating investors to exit at a price based on the net asset value of the shares being redeemed, minus the costs of selling the relevant assets and other associated costs.Pierre Weinstein, head of special situations at Verition, says the proposal gives investors seeking liquidity a clear route while also tackling the long-running discount at which the company’s shares have traded. He adds that remaining shareholders would retain exposure to the portfolio and benefit from a lower management fee.
Implications for shareholders and manager
Under the proposal, River UK Micro Cap would continue with Liontrust as investment manager under its existing investment policy and objective. The management fee would be reduced to 0.35% of net asset value per year.Verition says it welcomes the board’s engagement and supports implementation of the plan. The statement indicates backing from a significant shareholder as the London-listed company seeks to balance liquidity for exiting investors with continuity for those staying in the fund.
Our earlier coverage of Equites Property Fund outlined how the company lifted its interim distribution after accelerating its exit from the UK and redirecting capital toward South Africa. We noted that the £200.5 million Aviva portfolio sale helped reduce leverage and bolster liquidity, positioning the REIT to reinvest proceeds into domestic logistics assets while maintaining its FY27 guidance.
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