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Funds boutique posts first profit as assets soar 250%

Funds boutique posts first profit as assets soar 250%

Gresham House reported its maiden adjusted profit last year as its assets soared past £2 billion on two ‘transformative’ buys.

Total assets under management climbed 250% last year from £649 million to a total £2.3 billion, following the purchases of micro cap and VCT manager Livingbridge, adding around £500 million and forestry manager FIM, which added around £915 million.  

The alternatives boutique said that it had identified further ‘synergies’ of around £700,000 as it integrated the two businesses which ‘are in the process of being captured’.

Chief executive Tony Dalwood (pictured) said: ‘We have continued to maintain momentum and make excellent progress in shareholder value creation whilst investing in the platform ahead of future growth, adding scale to the business and identifying synergies.

‘The opportunities in the alternatives sector offer high-quality long-term investment returns for clients, and Gresham House has quality fund management teams and award winning individuals to execute within those specialist markets. The 2019/2020 pipeline for further organic AUM growth is exciting.’

In addition to the purchased growth the business reported a 30% organic increase in assets.

The company last year raised £100 million for the listed Gresham House Energy Storage fund, targeting an initial yield of 7% from a leveraged portfolio invested in a network of industrial lithium-ion batteries in which renewable energy can be stored.

Gresham House also declared a maiden dividend of 3p per share. By mid-morning shares in the company were 2.2% higher, at 455p.

Formerly one of the UK’s oldest investment trusts, Gresham House re-launched as a diversified alternative asset manager in 2014 beneath Dalwood, founder of SVG Investment Managers, and Miton Group co-founder Michael Phillips.

In February the company soft-launched a new small cap strategy for Citywire AA-rated sector stars Ken Wotton and Brendan Gulston, who joined via the purchase of Livingbridge.

 

 

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