Mobeus acquired by Gresham House
Posted: September 10th, 2021, 8:57 am
https://www.investegate.co.uk/gresham-h ... 00093864L/
Another acquisition by GH after Hazel and Baronsmead.
Gresham House (AIM: GHE), the specialist alternative asset manager, is pleased to announce its intention to acquire the Venture Capital Trust ("VCT") business of Mobeus Equity Partners LLP ("Mobeus") for an initial consideration of £24.0 million, with further consideration of up to £12.1 million payable over a three-year period and subject to the achievement of certain criteria (the "Acquisition").
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 from Mobeus 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 (together, the "Mobeus VCTs"), with a combined AUM of £369 million. Following an extensive due diligence process, the Mobeus VCT Boards have unanimously approved the transaction.
https://www.investegate.co.uk/mobeus-in ... 10183878L/
Mobeus and Baronsmead are two of the leading names in the VCT industry. The transaction combines two investment and operations teams with market-leading track records, each with more than 20 years' heritage and experience, creating a significant platform in the VCT market across over £850 million of shareholders' funds. Each of the Mobeus VCTs' and the Baronsmead VCTs' brands will retain their individual investment strategies to offer investors the choice of two high-quality offerings. The Mobeus VCTs will remain focused on unquoted investments, whilst the Baronsmead VCTs will continue to invest in both unquoted and public companies traded on AIM.
The entire core management, investment and operational teams involved with the Mobeus VCTs will all transfer to Gresham House in connection with this transaction to form a significant enlarged team that will manage both the Mobeus VCTs and the Baronsmead VCTs. A wide-ranging multi-year agreement has been put in place between Mobeus and Gresham House to enable a smooth transition and continuity of management of the VCTs (including continuing to use the 'Mobeus' name for a period).
The Boards are pleased that Trevor Hope and Clive Austin, the two leading partners involved with managing the Mobeus VCTs' investment portfolios, are joining Bevan Duncan and Ken Wotton, who lead the investment management of the Baronsmead VCTs, in becoming the senior management team of the Strategic Equity division within Gresham House. Trevor and Clive will remain responsible for the investment, portfolio, and fund management of the Mobeus VCTs, alongside their investment and operations teams. They will be supported in the transition by Mobeus founder partners Mark Wignall and Rob Brittain who will act as consultants to Gresham House.
The Boards' considerations
After careful consideration and due diligence, the Boards believe that consenting to the novation of the investment advisory arrangements is in the interests of the Mobeus VCTs' shareholders. The Boards expect the creation of the enlarged VCT team to be well received by the market as creating an exciting and potent commercial force that should lead to enhanced prospects for Shareholders. In the context of a VCT sector that is evolving, this view is predicated on:
· Scale Advantage - The integration of the Mobeus and Baronsmead VCT teams within Gresham House creates one of the largest VCT teams in the sector with the coverage, experience, contacts and know how to access more and higher quality investment opportunities. The greater breadth and depth of resource in portfolio and talent management should also be valuable in assisting the Mobeus VCTs' existing portfolio companies to grow successfully.
· Continuity - Trevor Hope and Clive Austin will continue to lead the VCT team and will be supported in the transition by Mark Wignall and Rob Brittain. This management group is well known and has been highly regarded by shareholders for a considerable period. The Boards are confident that the team will continue to build the Mobeus VCTs' portfolios and enhance their value. Gresham House's investment philosophy is similar to that developed over many years by Mobeus, and the procedure for undertaking due diligence and approving new investments will be substantially the same as before.
· Portfolio Diversification - The access to a much larger asset base and investment opportunities should enable the combined VCT investment team to build more diversified VCT portfolios across a broader range of sizes and stages of investment. The Boards believe that this combined VCT investment team will be a major force in the supply of capital to the VCT sector and it is anticipated that the team's enhanced market position should attract strong deal flow.
· Investment in Capability - The Mobeus VCT investment team has delivered outstanding performance over many years, but it has become clear that the changing demands of the market mean that the requirement for additional investment in people, technology and processes could become constrained within the framework of the existing Mobeus partnership structure.
The Boards can confirm that no material changes are being made to the terms of the investment advisory arrangements. Shareholders can also be assured that the Boards' track record of governance and independence will be maintained.
Another acquisition by GH after Hazel and Baronsmead.
Gresham House (AIM: GHE), the specialist alternative asset manager, is pleased to announce its intention to acquire the Venture Capital Trust ("VCT") business of Mobeus Equity Partners LLP ("Mobeus") for an initial consideration of £24.0 million, with further consideration of up to £12.1 million payable over a three-year period and subject to the achievement of certain criteria (the "Acquisition").
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 from Mobeus 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 (together, the "Mobeus VCTs"), with a combined AUM of £369 million. Following an extensive due diligence process, the Mobeus VCT Boards have unanimously approved the transaction.
https://www.investegate.co.uk/mobeus-in ... 10183878L/
Mobeus and Baronsmead are two of the leading names in the VCT industry. The transaction combines two investment and operations teams with market-leading track records, each with more than 20 years' heritage and experience, creating a significant platform in the VCT market across over £850 million of shareholders' funds. Each of the Mobeus VCTs' and the Baronsmead VCTs' brands will retain their individual investment strategies to offer investors the choice of two high-quality offerings. The Mobeus VCTs will remain focused on unquoted investments, whilst the Baronsmead VCTs will continue to invest in both unquoted and public companies traded on AIM.
The entire core management, investment and operational teams involved with the Mobeus VCTs will all transfer to Gresham House in connection with this transaction to form a significant enlarged team that will manage both the Mobeus VCTs and the Baronsmead VCTs. A wide-ranging multi-year agreement has been put in place between Mobeus and Gresham House to enable a smooth transition and continuity of management of the VCTs (including continuing to use the 'Mobeus' name for a period).
The Boards are pleased that Trevor Hope and Clive Austin, the two leading partners involved with managing the Mobeus VCTs' investment portfolios, are joining Bevan Duncan and Ken Wotton, who lead the investment management of the Baronsmead VCTs, in becoming the senior management team of the Strategic Equity division within Gresham House. Trevor and Clive will remain responsible for the investment, portfolio, and fund management of the Mobeus VCTs, alongside their investment and operations teams. They will be supported in the transition by Mobeus founder partners Mark Wignall and Rob Brittain who will act as consultants to Gresham House.
The Boards' considerations
After careful consideration and due diligence, the Boards believe that consenting to the novation of the investment advisory arrangements is in the interests of the Mobeus VCTs' shareholders. The Boards expect the creation of the enlarged VCT team to be well received by the market as creating an exciting and potent commercial force that should lead to enhanced prospects for Shareholders. In the context of a VCT sector that is evolving, this view is predicated on:
· Scale Advantage - The integration of the Mobeus and Baronsmead VCT teams within Gresham House creates one of the largest VCT teams in the sector with the coverage, experience, contacts and know how to access more and higher quality investment opportunities. The greater breadth and depth of resource in portfolio and talent management should also be valuable in assisting the Mobeus VCTs' existing portfolio companies to grow successfully.
· Continuity - Trevor Hope and Clive Austin will continue to lead the VCT team and will be supported in the transition by Mark Wignall and Rob Brittain. This management group is well known and has been highly regarded by shareholders for a considerable period. The Boards are confident that the team will continue to build the Mobeus VCTs' portfolios and enhance their value. Gresham House's investment philosophy is similar to that developed over many years by Mobeus, and the procedure for undertaking due diligence and approving new investments will be substantially the same as before.
· Portfolio Diversification - The access to a much larger asset base and investment opportunities should enable the combined VCT investment team to build more diversified VCT portfolios across a broader range of sizes and stages of investment. The Boards believe that this combined VCT investment team will be a major force in the supply of capital to the VCT sector and it is anticipated that the team's enhanced market position should attract strong deal flow.
· Investment in Capability - The Mobeus VCT investment team has delivered outstanding performance over many years, but it has become clear that the changing demands of the market mean that the requirement for additional investment in people, technology and processes could become constrained within the framework of the existing Mobeus partnership structure.
The Boards can confirm that no material changes are being made to the terms of the investment advisory arrangements. Shareholders can also be assured that the Boards' track record of governance and independence will be maintained.