In a letter to investors in the LF Equity Income fund, formerly the LF Woodford Equity Income fund, Link managing director Karl Midl said that “as part of its objective of seeking to preserve capital value”, it had made a “limited number of follow-on investments” in the last three months.
“We did not anticipate making further investment in Mafic at the time of our previous letter to investors, but we believe that this further investment was in investors’ best interests as the company seeks to move to increased production,” it added.
The letter said that Link “anticipated that the sale of all remaining assets will be completed in 2022,” but that it was unable to provide a specific date for either the fund’s fifth capital distribution or the completion of its winding up, confirming what had been said in August.
“We would like to reassure you that we continue to take all possible steps to act in investors’ best interests and to return cash to you at the earliest opportunity, while seeking to maximise value from the sale of those assets,” it said.
As of last month, the fund’s remaining assets are worth £124.3m. As well as Mafic, the fund comprises holdings in Atom Bank, Benevolent AI, Cambridge Innovation Capital, Drayson, Nexeon, Origin, RM2, Rutherford Healthcare and Sabina Estates.
The next update on the fund is expected to be sent either around 15 March or when the fund can commence its fifth capital distribution.