Scottish Mortgage Investment Trust PLC (LSE:SMT) is asking shareholders to approve a change to its investment policy that would allow it to make up to £250 million of additional investments in unlisted companies, even when its existing 30% limit on private holdings has been breached.
The trust, managed by Baillie Gifford, currently caps investment in private companies at 30% of total assets at the time of purchase, but that threshold has been exceeded as a result of factors outside its direct control.
Share buybacks totalling approximately £3 billion across 2024 and 2025 reduced the weighting of public holdings, pushing private company exposure higher as a proportion of the portfolio.
A sharp upward revaluation of SpaceX, the trust's largest holding, also contributed significantly, with the position rising from approximately 8.2% of total assets at the end of November 2025 to approximately 15.1% at the end of December 2025.
The proposed amendment would not change the existing 30% limit, which would continue to apply to the manager, but would give the board discretionary authority to permit up to £250 million of further private company investments when that limit is exceeded.
The additional capacity would be subject to annual renewal by shareholders from 2027 onwards.
A general meeting to vote on the proposal has been convened for 10 April 2026.
The board warned that if the resolution is rejected, the trust's ability to make follow-on investments in existing private holdings will remain constrained.