Alternative asset manager, Gresham House (GHE) has announced that it has agreed terms to purchase the Venture Capital Trust (VCT) business of Mobeus Equity Partners LLP (Mobeus) for an upfront payment of £24.0 million, with a further £12.1 million payable over a three-year period, subject to certain criteria being achieved. To fund the purchase, Gresham House has separately announced a £40m placing that comprises a £20m ‘cash placing’ (of 2,197,802 new ordinary shares) at a price of 910 pence per share, and a £20 million ‘vendor placing’ by way of a placing of 2,197,802 new ordinary shares to be issued to Mobeus Equity Partners LLP under the terms of the acquisition. Gresham House also says that, in addition to funding the purchase of the VCT business, the net proceeds of the placing will also be used to fund development projects, such as battery storage and solar projects, which are intended to be acquired by vehicles managed by Gresham House.
The Mobeus VCTs
Mobeus is a UK-based investment firm managing assets across two distinct client groups, one of which is the VCT business being acquired by Gresham House. The four VCT contracts being acquired are with Mobeus Income & Growth VCT Plc, Mobeus Income & Growth 2 VCT Plc, Mobeus Income & Growth 4 VCT Plc and The Income & Growth VCT Plc. The combined AUM of these vehicles is £369 million. The Mobeus VCT Boards have unanimously approved the transaction.
Comments from Anthony (Tony) Dalwood, CEO of Gresham House
“This Acquisition substantially boosts our AUM, profitability and enhances our presence in the VCT segment, accelerating progress towards our GH25 targets. The combination of Mobeus with Gresham House’s existing VCT business expands our scale and presence in the VCT segment, and our combined complementary strengths will bring what believe are considerable benefits to VCT investors.
“The Acquisition brings together two of the leading teams and brands to create a VCT platform with c.£850 million of AUM. In addition, the Mobeus VCTs’ focus on private markets and emphasis on total return is highly complementary to our existing Baronsmead VCTs, which invest in unlisted and public companies to deliver consistent dividends.
“As the VCT segment continues to consolidate, this deal enhances our combined reach amid what we believe is a period of rising demand for early stage growth capital. The role of VCTs in supporting emerging and disruptive businesses is closely aligned with Gresham House’s ESG-focused investment strategies and I look forward to working closely with the Mobeus team to deliver excellent returns for all our stakeholders.”
Other Gresham House funds
Gresham House also manages Strategic Equity Capital Plc – a UK investment trust that takes a private equity approach to investing in listed markets (click here to read our research note on the trust that was published yesterday), as well as Gresham House Strategic and Gresham House Energy Storage.