Liontrust launch failure dents optimism for ESG investment trust IPOs

£100m minimum fund raise too optimistic

Liontrust’s inability to raise sufficient capital to bring its hotly anticipated ESG trust (ESGT) to market has raised questions as to the viability of any asset managers bringing ESG equity investment companies to IPO.

ESGT's failure to launch was pinned by some market commentators on an overly optimistic minimum fund raise and insufficient differentiation, but others point to the growing list of existing equity trusts titling their investment policies towards ESG considerations.  "Liontrust is a market leader", said Laith Khalaf, financial analyst at AJ Bell. "If they cannot get an ESG investment trust off the ground, it is hard to see anyone else doing so."  Fund raising  Managed by Liontrust's highly regarded sustainable investment team led by Peter Michaelis, which won a number of categories a...