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Gresham House to buy venture capital trust business in 'materially earnings enhancing' deal

The transaction will be funded from the proceeds of a £40mln City fundraiser

Gresham House PLC -

Specialist asset manager Gresham House PLC said it is acquiring the venture capital trust business (VCT) of Mobeus Equity Partners for up to £36.1mln.

The deal, which will see Gresham spend £24mln upfront, is being accompanied by a £40mln share placing.

The addition of Mobeus’ £396mln of investments will bring total assets under management to £5.4bn once the transaction is complete.

Gresham described the acquisition as “materially earnings enhancing”, providing a £4.5mln boost to operating profit and return on invested capital of over 15%.

"As the VCT segment continues to consolidate, this deal enhances our combined reach amid what we believe is a period of rising demand for early-stage growth capital,” said Anthony Dalwood, chief executive.

“The role of VCTs in supporting emerging and disruptive businesses is closely aligned with Gresham House's ESG-focused investment strategies and I look forward to working closely with the Mobeus team to deliver excellent returns for all our stakeholders.”

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Price: 924 GBX

Market Cap: £304.42 m

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Gresham House boosts assets under management with acquisition after a strong...

Gresham House CEO Tony Dalwood and chief financial officer Kevin Acton speak to Proactive London's Stephen Gunnion about the company's first-half results and the acquisition of the venture capital trust (VCT) business of Mobeus Equity Partners, which will be funded with a proposed £40 million...

1 week, 2 days ago

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