Gresham buying venture capital business of Mobeus for £36.1mn
LONDON, UK: Gresham House announced its intention to acquire the Venture Capital Trust (VCT) business of Mobeus Equity Partners LLP 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 Company intends to raise gross proceeds of approximately £40 million through a placing, which includes a £20m cash placing of 2,197,802 new ordinary shares of 25 pence each in the capital of the company at a price of 910 pence per placing share and a £20 million vendor placing by way of a placing of 2,197,802 new Ordinary Shares to be issued to the sellers pursuant to the acquisition.
The intended net proceeds of the placing will be used to fund the acquisition as well as to fund development projects such as battery storage and solar projects, which are intended to be acquired by vehicles managed by Gresham House, thereby creating value for shareholders.
Mobeus is a UK-based investment firm managing assets across two distinct client groups, one of which is the Venture Capital Trust (VCT) business being acquired by Gresham House.
The four Venture Capital Trust (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 (“Mobeus VCTs), with a combined AUM of £369 million.
Commenting on the Acquisition, Anthony Dalwood, Gresham House’s Chief Executive Officer, said: “This Acquisition substantially boosts our AUM, profitability and enhances our presence in the VCT segment, accelerating progress towards our GH25 targets. The combination of Mobeus with Gresham House’s existing VCT business expands our scale and presence in the VCT segment, and our combined complementary strengths will bring what believe are considerable benefits to VCT investors.
“The Acquisition brings together two of the leading teams and brands to create a VCT platform with c.£850 million of AUM. In addition, the Mobeus VCTs’ focus on private markets and emphasis on total return is highly complementary to our existing Baronsmead VCTs, which invest in unlisted and public companies to deliver consistent dividends.
“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. 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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9 Sep, 5:06 pm GMT+1 ·Disclaimer
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