The board of the £55m Henderson Private Equity investment trust has decided to close the vehicle as a result of its persistently wide discount and failure to grow assets under management.
Under the proposals, the fund of funds will sell its portfolio over the next two years with the aim of returning as much cash as possible to investors.
"Significant efforts have been made over the last year to reduce the company's
discount and increase liquidity in its shares through sustained marketing and investor relations activity," the board says.
"The company's discount has, however, remained one of the widest of its peer group, an inevitable consequence of being small and illiquid in an unfashionable sector."
Henderson Private Equity was trading on a discount of 55.3% on 16 August.
Shareholders will have the opportunity to vote on the proposals in the next few months.
"Having explored various fundraising opportunities and corporate initiatives whilst at the same time seeking to raise the company's profile with existing and potential shareholders, the board and the portfolio manager have now concluded it is in the best interests of shareholders to maximise cash proceeds to investors over time by undertaking an orderly realisation of assets," the board says.
