New commitment
April 24 2003 - 5:08AM
UK Regulatory
RNS Number:3237K
Graphite Enterprise Trust PLC
24 April 2003
GRAPHITE ENTERPRISE TRUST PLC
Graphite Enterprise Trust PLC (the "Enterprise Trust") has made a commitment of
#50 million to Graphite Capital Partners VI (the "Fund") a new private equity
fund raised by Graphite Capital Management Limited ("Graphite Capital").
John Sclater, Chairman, made the following comments:
As with Graphite Capital's previous funds, Graphite Capital Partners VI will
focus on small and medium-sized UK management buy-outs, buy-ins and development
capital investments. There was high demand for the Fund from institutional
investors, exceeding its maximum target size of #375 million. However, in the
light of the successful, harmonious and long term relationship between the
Enterprise Trust and its manager, Graphite Capital offered preferential terms to
the Enterprise Trust for its investment. These terms specify that, although the
management charges within the Fund are higher than those charged under the
current management agreement between Enterprise Trust and Graphite Capital,
there will be an offset to ensure that the overall charges from Graphite Capital
to the Trust do not change. The carried interest arrangement within the Fund
will also be identical to that already in place. Against these points the Board
has had to weigh up the long term nature of the commitment to a fund with a life
of up to twelve years and the possible dilution of influence that inevitably
comes with investing alongside other investors.
The Board is pleased to have agreed the terms and quantum of this new investment
commitment with Graphite Capital. It secures for the Enterprise Trust an
appropriate share of the investments generated by Graphite Capital for the next
few years without suffering any increase in charges. The long term performance
of the Enterprise Trust has been achieved largely from the investments sourced,
monitored and realised by Graphite Capital and we are glad that this arrangement
allows the Trust to continue its relationship with its successful manager.
For further information, please contact:
Rod Richards / William Eccles Tel: 020 7825 5300
Graphite Capital
This information is provided by RNS
The company news service from the London Stock Exchange
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