Electra puts its investment manager on notice

Electra Private Equity has provided what it describes as an “Interim update on the review of the Company’s investment strategy and policy and its structure”. Electra say that the review, which was announced in January, is on track for completion in the autumn. However, they say that a number of interim conclusions have been reached and these will take immediate effect. Details are as follows:

The board says that, “In order to strengthen its corporate governance structure, the Board has decided to establish an executive function to provide ongoing support to the Board; including the provision of administrative and analytical support in relation to the review process.  The Board has appointed the serving non-executive director Edward Bramson as unpaid interim Chief Executive Officer; a search for a Chief Financial Officer is also under way. Neither appointment will cut across the delegation to the investment manager under the MIG”.

The board also say that, “To provide the Board with the flexibility to put in place any potential changes as an outcome of the Review without any undue delay, the Board has served notice of termination of the Management & Investment Guideline Agreement and the related limited partnership agreement under which management of the Company’s operations and investments is wholly outsourced to Electra Partners LLP. The Board continues to explore a range of options including retaining the services of Electra Partners as investment manager under a mutually acceptable agreement”. Further to this, the board say that, “The Management & Investment Guideline Agreement provides for a notice period of 12 months during which time Electra Partners continues to provide the same administrative and investment management services as at present, although there may be some constraints on the rate of new investments”.

The board is also announcing further changes to its com position. David Lis, a former CIO at Aviva Investors, and Paul Goodson, a former Chairman of Great Bear Distribution Ltd and former Managing Director of Barclays Private Equity Ltd, have agreed to join the Board as non-executive directors with immediate effect.

Electra puts its investment manager on notice : ELTA