Rapid Realisations seeks approval to wind down

RAPID Realisations Fund, the AIM-listed fund run by Haydock-based Cenkos Fund Managers, has announced that it will propose an orderly winding-down of its fund to shareholders at its AGM next month.

The changes are brought about following a campaign by activist investor fund
The firm said that it will propose a change to its investment policy so that its priority would now be “to manage the realisation of the Company’s investment portfolio and to maximise the return of invested capital to Shareholders during the period ending on 30th September 2013”.

The firm said that it would not make any more new investments during the period but added that sales of existing assets would be made at the “absolute discretion” of fund manager Cenkos.

It also concurred with a condition sought by Damille Investments that the maximum amount that should be paid to directors to manage the fund is reduced to £80,000 a year, with no single director being paid more than £20,000.

Rapid Realisations began life in 2007 as a £60m fund which was meant to take short-term stakes in companies before floating them on the stock exchange. It has taken stakes in a number of North West companies, including Chorley-based betting chain Taylor Made and Manchester-based companies Barburrito and iProphets.

However, the market for raising funds for small cap stocks has since fallen away and the fund has been unable to achieve an exit from any of its investments to date. Its assets are currently valued at around £55.7m.

The AGM will be held in Guernsey on September 14.