Innovation Capital Advisors

News

ICA leads the £7m debt capital raising for Gresham House plc

April 26th, 2016

Client Overview

Gresham House plc is one of the oldest UK companies on the LSE, incorporated in 1857. In December 2014, an experienced new management team led by Anthony Dalwood raised new capital, supported by established UK institutional investors to transition Gresham House from an Investment Trust  into a specialist asset manager focused on differentiated, alternative and illiquid investment strategies.  Gresham now has an established asset management platform with c.£0.24bn of third party assets under management.

In 2015 Gresham House won its first investment mandate, taking over the management of Spark Ventures plc, since rebranded Gresham House Strategic plc (GHS).  GHS is now the core vehicle for the Group's Strategic Public Equity strategy, investing primarily in UK and European smaller public companies, applying private equity style techniques and due diligence alongside a value investment philosophy to construct a focused portfolio of 10-15 holdings.  The investment manager aims for a considerably higher level of engagement with investee company stakeholders in order to exploit market inefficiencies and support a clear equity value creation plan, targeting above market returns over the long-term.  

In November 2015 Gresham House extended its specialist asset management platform and acquired Aitchesse Ltd, a leading asset manager of UK commercial forestry with c.£200m of assets under management. The team has plans to launch new funds and increase institutional access to the asset class.

Deal Overview 

Innovation Capital Advisors (‘ICA’) was engaged by Gresham House to help them secure debt finance against two legacy property assets they had in their portfolio to enable them to raise more capital to facilitate the execution of their new strategy focused on strategic public equity. With this remit ICA led the capital raising process and having secured a number of offers of funding, Gresham House chose a debt package from Kleinwort Benson, based not only on the terms on offer but because because of the opportunity to build a long term relationship.    

Quotes

Michael Phillips, Strategic Development Director of Gresham House plc, said: “ICA provided invaluable support and guidance throughout our capital raising process and has enabled Gresham House to not only secure debt finance on good terms but also establish a relationship with a leading bank that could support Gresham House as it grows over the next 3 to 5 years.” 

Simon Ramery, Senior Director of Innovation Capital Advisors commented “It was pleasing to secure multiple offers of funding and then secure a debt package from a lender that could become a long term partner to Gresham House Plc over the next 3 to 5 years.”



Tags:
Category:

Sign up to our newsletter for the latest news & knowledge