June 5, 2020 / 8:17 AM / a month ago

Link to raise $284 million from sale of ex-Woodford fund healthcare assets

(Reuters) - Fund administrator Link Fund Solutions said it will sell up to 19 healthcare assets in the LF Equity Income fund formerly run by Neil Woodford for 223.9 million pounds ($284 million) to Acacia Research Corp as it seeks to recoup cash for investors.

Link said on Friday the sale will enable it to make further capital distributions to investors in the LF Equity income fund, which was suspended in June 2019 after investors tried to get their money out after a period of underperformance.

The fund eventually closed in October, with investors angered by its exposure to illiquid unlisted, which led to a regulatory investigation.

Link has been arranging asset sales after dividing them into two portfolios, the first containing more liquid ones being sold by BlackRock (BLK.N) and the second with less liquid ones such as unlisted healthcare stocks sold by PJT Park Hill (PJT.N).

The assets to be sold to Acacia (ACTG.O) come from both portfolios, Link said in a statement.

Link began distributing payouts to investors from the fund in January and has so far given back 2.3 billion pounds. It said it would write to investors with an update on capital distribution no later than July 29.

It said the fund’s current net asset value (NAV), as calculated on June 3, was 444 million pounds, including the assets to be sold to Acacia.

($1 = 0.7894 pounds)

Reporting by Muvija M in Bengaluru and Carolyn Cohn in London; Editing by Alexander Smith

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