International Biotechnology Trust forms partnership with Schroders Capital

LONDON - International Biotechnology Trust PLC (IBT) announced Thursday it has entered into a partnership agreement with Schroders Capital to expand its investments in unquoted biotechnology opportunities.

The trust plans to make an initial commitment of £10 million to the partnership, representing approximately 4% of its current portfolio value. This investment will be directed toward funds focusing on unquoted biotechnology companies over time.

According to the press release statement, IBT’s current unquoted exposures stand at approximately 8.4% of portfolio value, primarily consisting of two funds managed by SV Health Partners. These existing holdings will remain outside the new partnership arrangement.

The board’s stated intention is for the partnership to provide shareholders with access to a portfolio of innovative earlier-stage companies through unquoted funds, diversified by underlying manager, vintage, and geography over the long term.

Under the agreement terms, Schroders Capital will receive a management fee of 0.9% per annum based on the asset value of IBT’s investment in the partnership, plus £25,000 annually for administration costs. The total fees payable to Schroders Capital in any year will be capped at 0.25% of IBT’s net asset value.

Schroders Capital brings over 25 years of experience in healthcare and biotechnology sectors, having committed more than $4.3 billion (approximately £3.5 billion) across nearly 700 investments worldwide, according to the announcement.

The partnership aligns with IBT’s investment policy of maintaining a diversified portfolio focused on long-term capital growth, with its stated range for unquoted company exposure being 5-15% of portfolio value.

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