BELGIUM - Shareholder rights and corporate governance advisory company Deminor is to launch an ‘activist fund' later this year.
It will be Deminor's first investment fund and will target companies with poor corporate governance records.
"We hope to raise €150m, which could increase up to €300m by year three," said Deminor partner Erik Bomans. Institutional investors, private clients, and others are being approached about investing.
Deminor hopes to launch the fund in September. It will be based in the Netherlands, from where it will also be managed.
"Our lawyers are currently setting up the structure," said Bomans.
The fund would be concentrated on ten to fifteen stocks, which the firm believes from its research, have potential for returns from the application of good corporate governance. It will be a long only fund.
"We will be investing only in European-listed stocks that we know from our local offices," said Bomans.
After Deminor sold its proxy voting and corporate governance rating activities to ISS (Institutional Shareholder Services) some time ago, the company continued to provide other advisory services to investors and shareholders including corporate valuations in mergers and acquisitions, and other situations.
On September 13, Deminor is holding its first ‘Active Investor Conference' in Brussels to bring investors and corporates together to improve governance issues and to create long-term shareholder value. Details available from email@example.com
Besides Brussels, the firm has operations in Amsterdam, Geneva, Milan and Paris.