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Deals Of The Day: The Latest In Wealth Management M&A - Gresham House

Editorial Staff

13 September 2021

Gresham House
Last week, specialist alternative investments manager announced that it intends to bulk up with a funds acquisition. Separately, it reported that its total assets under management rose by 19 per cent year-on-year to £4.7 billion ($6.51 billion) as of 30 June, while adjusted operating profit surged 32 per cent to £6.9 million for the first half of 2021. 

The UK-based firm said that it intends to buy the Venture Capital Trust business of for an initial sum of £24.0 million, with further sums of up to £12.1 million payable over a three-year period, subject to the achievement of certain criteria. To finance this deal, Gresham House plans to raise gross proceeds of about £40 million through a placing, which includes a £20 million cash placing of 2,197,802 new ordinary shares of 25 pence each.

The four VCTs run by Mobeus have a combined £369 million in assets.

“Our first half performance has been very strong, with robust AUM growth driven by organic progress and international expansion. In addition, the acquisition of the Mobeus VCT business, announced today, will create further shareholder value,” Tony Dalwood, CEO, said. 

“We continue to see strong demand for our ESG-focused investment strategies, underpinned by our compelling investment performance. A number of our sustainability-focused funds have held successful closes since the half-year end and the acquisition of the Mobeus VCT business also brings significant scale to create a leading player in the VCT segment,” Dalwood said.