Oakmount & Partners Ltd reports a resurgence in confidence among UK private investors since July, following a challenging period for consumer confidence for much of the past year.
Despite these turbulent times, CEO Glenn King has remained steadfast in his commitment to the firm’s plans for a London listing or high-growth private acquisition.
King acknowledges that while the past 12 months have been tough for corporate fundraising firms, he believes the experience has been invaluable, providing key insights and opportunities for future growth.
The undulations and lack of consumer confidence in the broader markets over the past year — something the firm hasn't experienced since 2008 — prompted a strategic shift for Oakmount in September 2023. Instead of focusing solely on external fundraising for other companies, the firm decided to prioritise building its own products and assets.
“We decided to concentrate on building up our own products and assets,” King explains. “We've now gained complete control of our investments because we manage them directly, and we've established a robust asset bank.”
With an eye on a potential IPO or strategic sale, King aims to scale Oakmount’s valuation to £50 million within three years and to £80 million over five years. His strategy revolves around creating an asset-rich, high-cashflow portfolio through targeted property investments and diversification into emerging sectors.
“The timing couldn’t be better,” King feels. “As we approach two decades in business, we’ve built a track record of consistent success and solid foundations. Now, it’s time to elevate Oakmount to the next level of growth.”
Property push
A cornerstone of Oakmount’s evolving strategy has been a push into the UK and Dubai property sectors, employing a range of strategic approaches.
“We’re acquiring assets well below market value because as cash buyers we’re getting a lot more bang for our buck,” King explains.
One strategy is the buy-refurbish-refinance model, where commercial properties are being acquired and transformed into residential community spaces. This shift aligns with broader trends in the UK housing market, where increasing house prices are driving more people towards renting — a trend also recognised by major players as the likes of Legal & General and Lloyds Banking have built businesses in this area.
“In America, it's very much a rental market, and I think that is certainly coming across here to the UK more now than ever,” says King. “It’s going to be the modern way of living: complexes and community environments with wellness amenities like health spas, swimming pools, and sports facilities as an example.”
Oakmount has several development projects underway, including Follyfields in Essex, which offers luxury three- and four-bedroom homes, and The Pump House in Cambridge, featuring 1- and 2-bedroom luxury apartments. Additionally, other buy-sell-refinance opportunities in Dubai are underway with more planned, allowing Oakmount’s private investors to tap into these property market trends via the firm’s fixed-income and high growth private equity products.
Managing risk and scaling growth
With stock markets experiencing volatility, King emphasises the critical role of the firm's ongoing property ventures in enhancing diversification and managing risk.
Oakmount is also strategically hedging its investments across various asset classes, including green technology and AI, to prevent overexposure in any single sector.
The largest investment in Oakmount's portfolio is InterGroup, a 'green mining' company set to list on the Toronto Stock Exchange (TSX) through a SPAC merger in the fourth quarter of 2024.
King explains that he and Oakmount have accumulated a significant shareholding in InterGroup through multiple investments made alongside their clients, having supported the founders in several equity fundraisers since 2013.
“When our private clientele invests, we always invest too. Otherwise, how can you introduce a product to clients and speak to its credibility if you’ve got no skin in the game?” King explains.
A stake in Biosus Energy, a provider of renewable energy solutions for businesses and organisations, has also recently been added to Oakmount's portfolio in a similar fashion. Oakmount has been brought in to help Biosus raise expansion capital for their new projects. “It’s a perfect fit for us,” King notes, “because we’re able to assist them with their capital needs to expand, and once again, we’re taking a significant equity position within the company.”
Additionally, Oakmount is currently in the due diligence stage for a couple of other investments. These include Hydrogen Solutions, which holds key technology in solid oxide fuel cells for clean power generation and solid oxide electrolyser cells for the production of green hydrogen; and an artificial intelligence company — both of which King says align with the firm’s strategic focus on innovation and sustainability.
Positive outlook
King is confident that these moves will help the company scale to its ambitious targets, though he notes that not all investments are without risk and that the swings seen in the market can be daunting for some investors, particularly those with less experience.
“With new investors, there’s often an undercurrent of nervousness," he notes. "But if you avoid risk entirely, you also forgo the opportunity for reasonable returns. Building wealth takes time, and while caution is important, calculated risks are essential for growth.”
“But we don't want to be overexposed in any one area,” he adds, “which is why we're committed to building a diversified portfolio across various asset classes.”
Looking ahead to a potential IPO or high-growth acquisition, King expresses confidence in the firm’s ability to achieve its growth objectives.
“Everything for us right now is about scale,” King emphasises, noting that Oakmount aims to position itself as an asset-rich and cash-generative business that appeals to investors and wealth management institutions.
“With a diversified asset base, an expanding property portfolio, and a renewed focus on self-reliance, our goal is clear: to build substantial value for shareholders.”
His optimism about the future has been revitalised in recent weeks: “The winds of change have started to blow, and the envelope of confidence is open once more.”