Boaz Weinstein and Richard Pavry nominated to SDCL board

Boaz Weinstein and Richard Pavry have been nominated to the board of SDCL Efficiency Income as the £395m investment trust moves ahead with a managed wind-down and plans to return capital to investors.

Weinstein is founder and chief investment officer of Saba Capital and is the trust’s largest stakeholder, holding a 27.8% economic interest through shares and total return swaps.

Pavry, former chief executive of Devon Equity Management, has been nominated by General Atlantic, the trust’s second-largest investor with a 16% stake.

Shareholders approved a managed wind-down in July after the board announced in April that it would return capital. Both nominations were requested during consultations over the wind-down, with Saba and General Atlantic seeking board representation.

The two nominees will serve as non-independent non-executive directors and will not receive board fees. Their appointments require shareholder approval at a general meeting in London on 15 October; the existing board has recommended that shareholders support the nominations.

If approved, the board will expand to six members, joining chairman Tony Roper and current non-executive directors Helen Clarkson, Sarika Patel and Rosemary Boot.

Fund manager Jonathan Maxwell, chief executive of Sustainable Development Capital, will oversee the disposal and realisation of the trust’s asset portfolio as the wind-down proceeds. At the time of the announcement the trust’s shares were trading at a discount of about 52% to the value of underlying assets, a factor that has limited options for portfolio growth.

The board will be responsible for monitoring the sale of assets and the return of proceeds to investors. The nominations provide direct representation for the trust’s two largest shareholders during the wind-down and the subsequent distribution of capital.