The investment trust reported NAV per share of 594p, up from 568p at 31 March 2026. Total NAV rose from £2.9bn in March to £3.064bn by September. The special dividend will be paid on top of an interim dividend of 3.84p per share, up from 3.68p last year.

Chief executive Mat Masters said: “All three investment pools contributed to growth, with the investment portfolio delivering a return of 6.0% in the period: 12.3% from public companies, 0.6% from private capital and 4.7% from funds.”

The company completed the sale of its largest private asset, Stonehage Fleming, for £290m. This returned more than three times its original investment and represented a 33% uplift on the March 2025 carrying value.

It invested approximately £110m of the proceeds in two new private capital investments: Blue Diamond garden centres and Conquip Engineering. Mr Masters said the group has a “robust balance sheet with significant liquidity”, with £277m of cash and £325m of undrawn credit facilities “available to capitalise on new opportunities”.

Net investment cash flows saw an inflow of £238.9m, with investments in the portfolio totalling £245.4m and realisations totalling £484.3m. After investment income, management expenses, dividend payments to shareholders and share buybacks, the company reported a net cash inflow of £187.8m.

Mr Masters told shareholders that the private capital portfolio was valued at £709.2m as at 30 September 2026 and delivered a return of 13.8% in the first six months. The portfolio remains concentrated, with 18 holdings. Including the impact of foreign exchange, it has delivered annualised returns of 11.6% over the last 10 years.

On the special dividend, he said: “The special dividend of 20p per share, with a cash cost of around £100m, provides an additional dividend return of 5% of market capitalisation to all shareholders, while retaining capacity to fund future investments.”

The trust has allocated £38m to share buybacks at a weighted average discount of 37%, resulting in a 0.7% “accretion to NAV per share”. Since March 2024, it has allocated £137m to buybacks, resulting in a 2.5% accretion to NAV per share.

Jamie Cayzer-Colvin will step down as Head of Funds with effect from 1 January 2027. He will remain an executive director and a member of the board, continuing to contribute through his role on the Investment Committee. He will also support the Funds team during 2027 to ensure an orderly transition of responsibilities. The Funds pool will be led by Eloise Fox and Min Ong, who run the North America and Asia funds portfolios respectively.

In addition, the company announced in October that Theo Tizard will succeed Tom Leader as Head of Caledonia Private Capital in December 2026. Mr Masters thanked Mr Leader for his “significant contribution” since joining Caledonia in 2017 and for his leadership of Private Capital since 2021. Mr Tizard, who also joined in 2017, has considerable investment experience and a strong understanding of the portfolio and the firm’s long-term investment philosophy, ensuring continuity of approach. Mr Leader will remain available in an advisory capacity as the two work closely together on an orderly handover.

Mr Masters added: “Caledonia delivered another positive first half, generating a NAV total return of 5.4%, with all three investment pools contributing to growth.

“The completion of Stonehage Fleming, our largest private asset, for £290m marked an important milestone, generating more than three times our original investment and a 33% uplift to the March 2025 carrying value. This demonstrates the value within our private assets and the strength of our long-term investment approach.

“We reinvested approximately £110m of the proceeds in Blue Diamond and Conquip Engineering, two excellent businesses with attractive growth prospects where we believe our form of capital and support can make a meaningful contribution. We have a strong balance sheet and the financial capacity to pursue further investments.

“As part of our capital allocation policy, we have periodically paid special dividends following significant realisations, balancing investment opportunities, liquidity requirements and returns to shareholders.

“In keeping with this approach, we are declaring a special dividend of 20p per share. This provides an increased dividend return to all shareholders and complements our progressive ordinary dividend and continued share buybacks, reflecting our commitment to delivering long-term shareholder value.”