Candover Investments, the LSE-listed investment trust, is not planning to invest in any further deals through its private equity subsidiary Candover Partners, but will distribute cash to shareholders as these positions are realised. The realisations of all these positions will see Equity Trust under new ownership.

“We consider that the best way to optimise value for shareholders is likely to be Candover remaining as a listed investment trust, with the sole purpose of returning cash to investors over time as portfolio realisations are made by Candover Partners,” the firm’s chief executive Malcolm Fallen said in its interim statement.

“The board continues to believe there is significant value in the underlying investments in the portfolio,” he added.

Candover Partners will realise holdings as and when it is the right time to do so, but this will be done in the best interest of all its investors, not only its parent company, a spokesperson for the firm told WealthBriefing. Candover Partners has over 100 investors.

However, Candover Investors will not be making any further investments in the fund, because to do so would stretch the balance sheet too much, the spokesperson said.

Candover Partners had to shut its €3 billion ($3.9 billion) leveraged buyout fund in January after its parent company was unable to supply a €1 billion commitment to the pool due to a cash shortage, according to Bloomberg. Meanwhile, it is reported talks concerning a takeover of Candover Investments by Alberta Investment Management recently failed.

When asked about the sale of Equity Trust, Candover Investments declined to comment on any specific sales, but also added that this was a matter for Candover Partners to decide.

However, media sources citing people close to the matter say talks concerning the sale of Equity Trust to UK private equity house Doughty Hanson are taking place. Equity Trust is a provider of trust and fiduciary services with offices in over 30 jurisdictions. Previously part of a Dutch law firm, it became independent after an €182.5 million buyout in 2003. Doughty Hanson will seek to combine Equity Trust with TMF Group, a Dutch provider of management and accounting services, reports Bloomberg.