On raising capital

As markets get more nervous and easy money dries up, investment companies have to be more imaginativ...

As markets get more nervous and easy money dries up, investment companies have to be more imaginative in how they raise capital. Absolute return vehicles and infrastructure plays still seem to be in demand but companies are looking for other ways to bulk themselves up. Warrant/subscription share issues are likely to become more popular - JPM Chinese issued subscription shares on a 1x5 basis in March, for example. Merrill Lynch World Mining has demonstrated these issues can succeed in growing a fund, having raised almost £100m through this route over the past couple of years. For unf...