What is a split capital structure?
Split capital funds are companies that issue two or more different types of share. The different types of shares in the company are designed to meet different investors’ needs and typically provide either income or capital growth options. The structure tends to have a limited life with a fixed wind-up date. Income shareholders are entitled to all the income generated from the investments held by the company during its life whilst capital shareholders receive, at wind-up, the capital value of the company, including any capital growth achieved by the company over its life.
