Gresham House And Aberdeen Standard Investments Announce Strategic Public Equity Joint Venture
Gresham House plc and Aberdeen Standard Investments (ASI) have today announced that they have entered into an agreement which proposes the formation of a joint venture that will manage investments based on Gresham House’s well established strategic public equity approach.
The joint venture will seek to grow funds under management and establish a new fund that employs a strategic public equity approach through applying private equity techniques, thorough due diligence and a long-term investment horizon primarily to smaller public, quoted companies that are perceived to be undervalued and could benefit from initiatives to increase their value. Completion of the joint venture, and establishment of the new fund, will occur following the satisfaction or waiver of certain conditions.
Both ASI and Gresham House believe that regulatory changes, such as MiFID II, have created a substantial investment opportunity, particularly for companies below £300 million in market capitalisation, where market inefficiencies and valuation dislocations exist. In addition, they believe that an engaged approach using the principles and practices of private equity in terms of engagement and influence can achieve enhanced financial returns for investors.
The joint venture is intended to accelerate the growth of Gresham House’s existing strategic public equity strategy led by Graham Bird and Tony Dalwood, which includes a 20-year investment track record, and combine it with the distribution expertise and reach of ASI. It will offer ASI clients valuable diversification into an area of the market that is increasingly difficult to access.
As part of the strategic partnership ASI has undertaken to subscribe for up to 1,309,598 new shares in Gresham House at 496p per share, which rank equally with all other shares (the “Subscription”), representing 5.0% of Gresham House’s enlarged share capital as a result of the Subscription, conditional on Gresham House shareholder approval at its AGM, scheduled for 16 May 2019.
Gresham House Chief Executive Tony Dalwood commented: “Like us, ASI understands the importance of specialist alternative investment strategies. The joint venture offers Gresham House access to a powerful distribution network and an industry-leading product development capability. The Strategic Public Equity investment approach is something I have been involved with since 2003 and we are delighted to have ASI as a shareholder in the process.”
Aberdeen Standard Investments Global Head of Private Markets, Peter McKellar, commented: “The structural changes, liquidity issues and declining research coverage amongst smaller public quoted companies provides a long-term opportunity to generate significant investment returns for our clients.
“The establishment of this joint venture is in reaction to client demand for exposure to the increasing opportunities in strategic public equity. We identified Gresham House as a compelling joint venture partner based on a belief that working with a team with their experience, depth of resource and strong track record of Gresham House can deliver a compelling investment opportunity for clients.”
About Gresham House
Gresham House plc is an AIM quoted specialist alternative asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes strategic public and private equity (private assets), forestry, new energy, housing and infrastructure.
The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals. Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.
About Aberdeen Standard Investments
Aberdeen Standard Investments (ASI) is a leading global asset manager dedicated to creating long-term value for our clients and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
With over 1,000 investment professionals we manage £505.0 billion (US$643 billion, as at 31 December 2018) of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
ASI is a high-conviction; long-term investor who believes teamwork and collaboration are the key to delivering repeatable, superior investment performance. ASI is resolute in their commitment to active asset management.
ASI is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
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