Link Fund Solutions has warned investors that the winding up of the former Woodford Equity Income fund is likely to last into the second half of 2023, dragging the closure into its fourth year.

The warning comes as part of a letter to investors published yesterday (6 October), with the former authorised corporate director suggesting investors will need to reset any expectations they may have.

"Investors are reminded that the assets that remain to be sold are the less liquid assets of the fund and it is expected that some of these assets may not be sold before mid-2023," wrote managing director Karl Midl.

This marks the fifth capital distribution of the LF Equity Income fund and the first in almost two years, with around £20m set to be returned to investors. The final amount will be confirmed in November.

The last capital distribution was the result of the sale of a 19-strong portfolio of healthcare companies to Acacia Research Corporation for £220m and Ombu to Hambro Perks for £30m.

Within a year, the total value of Oxford Nanopore, which was included in the healthcare portfolio, had risen so far the single holding exceeded the price paid for the total portfolio.