Activists target Nelson Peltz’s Troian over UK fund

The campaign is a rare example of an activist investor playbook aimed at one of its highest profile businesspeople. Nelson Peltz, who co-founded Tryon Fund Management, often takes stakes in companies, seeking board seats and agitating for a change in strategy that will result in larger dividends for shareholders, including his firm. is included. In 2017 he launched a campaign against the consumer goods giant

Procter & Gamble Company,

that was at that time History’s biggest and most expensive proxy battle,

Investors Listed in London

Trian Investors 1 Limited,

They look forward to “achieving an acceptable standard of governance and restoring the confidence and confidence of independent shareholders”, they said in a declaration outlining their grievances.

The fund has a market capitalization of approximately $350 million, which is less than the company’s net asset value of approximately $500 million as of May 31. The fund’s investments include shares of a consumer products company.

Unilever PLC,

Recent Targets of Mr. Peltz’s Firm, Unilever said last month it would appoint Mr Peltz to its board.

In a securities filing Monday, Trian Investors 1 said its board believes it has acted responsibly and is reviewing investors’ requests to hold a meeting and revamp the board. . The company said the board welcomes the inputs and views of all stakeholders. A subsidiary of Trian Fund Management acts as the investment manager for the listed fund.

Trian is getting a taste of its medicine from two asset management companies, Invesco and Janus Henderson in which Troian bets,

When Trian Investors 1 was first listed in London in September 2018, it planned to invest in an under-performing listed company, drive change, exit investments and return capital to shareholders. Last year, the investment manager and the company’s board proposed changes to the investment policy. Trian will be able to make multiple investments at the same time; buying a majority stake; buying stake in private companies; And reinvest capital after exit instead of distributing profits to shareholders.

The resolution passed 48%, up from 52% last June. Investors say the proposals swung through simply because funds owned by Trian, along with investment bank

Jefferies Financial Group Inc.,

, at the time owned about 29% of the company and voted in favor. Investors say Jefferies had a conflict of interest because of its relationship with Tryon.

A Jefferies spokesperson could not immediately be contacted for comment.

The investors want to remove three directors from the board and nominate one independent director and one director to represent the group in their place, besides convening an extraordinary general meeting.

Investors claim that Tryon had a conflict of interest because of financial gains, which could have allegedly been forfeited as a result of a change in investment policy. Investors say the company’s board should have considered how the policy change would affect investors who want to exit and should now sell shares at a “significant discount” to the company’s underlying net asset value .

Aegon Asset Management UK plc also supports the proposals. Voting shares represent approximately 44% of the fund seeking change.

Since its first trading day, the fund is up about 13%, though it is down more than 20% so far this year. Shares fell nearly 2 per cent on Monday. Shares are rarely traded, and this year has had long stretches where none of the shares traded.

Mr Peltz is not the first shareholder activist to have faced the ire of his own UK investors. Dan Loeb also had a listed London vehicle. Subject of attacks by shareholder activists Those who wanted to reduce the discount at which the shares traded on their underlying net asset value. Global Value Fund also participated in that campaign.

The fund eventually agreed to appoint an independent director who was proposed by the shareholders and ended its operation.

Write to Julie Steinberg julie.steinberg@wsj.com