RM Infrastructure Income (RMII ) hopes to return all its capital to shareholders in three years’ time if a vote to wind down the company goes through next month.

In a circular to investors the board of the £127m high-yielding debt fund outlined its plans for an accelerated run-off, which would reduce the average remaining life of the loans from 1.7 years to less than one year.

It said that investment manager James Robson had previously provided a run-off portfolio, which showed the company achieving liquidation in the second half of 2027. However, the manager now believes the maturity of the portfolio could be reduced with ‘proactive management’.

Under this strategy £72m worth of loans would be returned quicker, with the maturity of the portfolio shortening to December 2026 and ‘a significant amount of capital’ returning next year. This would increase the net present value for shareholders by £7.5m compared to the previous plan.

In order to implement the strategy shareholders will be asked to approve a revision to the investment objective at the annual general meeting.

If approved the management fee will be amended so that Robson and his team will be eligible for a minimum fee of £33,300 a month until the earlier of the company’s liquidation, the end of 2026 or the value of the company dropping to £35m or less, after which it will be up for renegotiation. 

RMII had looked to merge with £1.8bn GCP Infrastructure Investments (GCP ) but talks broke down and were abandoned in September. While the RMII board had received other proposals they deemed these would not receive shareholder approval.

The board, which is chaired by Norman Crighton, is now unanimously recommending shareholders vote in favour of a wind-down at the upcoming annual general meeting on 20 December.