Gresham House To Acquire Livingbridge VC Fund Management Business (ALLISS)

LONDON (Alliance News) - Alternative asset manager Gresham House PLC said on Thursday it will ...

Alliance News 8 November, 2018 | 5:32PM
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LONDON (Alliance News) - Alternative asset manager Gresham House PLC said on Thursday it will acquire the fund and investment management businesses of Livingbridge VC LLP for up to GBP40 million.

Livingbridge manages GBP500 million of equities, through Baronsmead Venture Trust PLC and Baronsmead Second Venture Trust PLC, as well as two open ended investment companies.

The acquisition will be funded through the allotment of 1.6 million shares to Livingbridge VC, a new credit facility, and a placing of 2.6 million shares at a price of 448 pence per share, raising GBP11.7 million.

Shares in Gresham House closed untraded at 446.24 pence on Thursday.

Canaccord Genuity Ltd and Jefferies International Ltd are acting as joint brokers and bookrunners for the placing, which is conditional on the completion of the acquisition.

Gresham House will pay an initial GBP30 million, and an extra consideration of up to GBP10 million subject to trading performance of the acquired assets over a three-year period.

The acquisition is expected to increase Gresham's group assets under management to around GBP2 billion, and be earnings enhancing, with additional cost synergies providing accelerations towards its operating margin target of 40%.

"The acquisition is an extension of Gresham House's organic strategy, aligning investment goals of the two teams. Additionally, we expect the deal to be immediately earnings enhancing, taking the group's AUM past GBP2 billion, increasing our scale and relevance to investors and creating additional shareholder value. We're very much looking forward to welcoming the Livingbridge VC fund management team to Gresham House with whom we have a close cultural fit," said Chief Executive Anthony Dalwood.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Gresham House PLC 625.00 GBX 0.00 -
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