Saba Capital founder Boaz Weinstein is set to join the board of SDCL Efficiency Income alongside former Devon Equity Management chief executive Richard Pavry as the investment trust moves ahead with a managed wind-down, according to a report by QuotedData.
The appointments will give two major shareholders direct representation on the board as it oversees the disposal of the trust’s portfolio and the return of capital to investors.
Weinstein, Saba’s founder and chief investment officer, is the largest shareholder in SDCL Efficiency Income, with the activist investment firm holding a 27.8% economic interest through shares and total return swaps.
Pavry has been nominated by General Atlantic, the US growth equity investor and the trust’s second-largest shareholder, with a 16% stake.
SDCL Efficiency Income shareholders voted in July to proceed with a managed wind-down following a decision announced in April to return capital to investors. Saba subsequently approached the board to request a director nomination, while General Atlantic also sought board representation during consultations over the wind-down.
Both appointments require shareholder approval at a general meeting in London on 15 October. The board is recommending that shareholders support the nominations.
Weinstein and Pavry will serve as non-independent non-executive directors and will not receive fees for their roles. Their appointments will increase the board to six members, alongside chairman Tony Roper and existing non-executive directors Helen Clarkson, Sarika Patel and Rosemary Boot.
The £395m investment trust will be responsible for overseeing the realisation of its assets as fund manager Jonathan Maxwell, chief executive of Sustainable Development Capital, carries out the wind-down.
SDCL Efficiency Income has faced constraints on its ability to expand the portfolio because of a persistent discount between its share price and the value of its underlying assets. The trust's shares were trading at a discount of about 52% at the time of the announcement.
The board said the presence of nominees from Saba and General Atlantic would provide greater alignment between the two significant shareholders and the wider investor base during the wind-down process.
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