3 February 2025
Gresham House Energy Storage
Fund PLC
("GRID" or the
"Company")
Change to Alternative
Investment Fund Management ("AIFM") Agreement - Reduction in Fund
Management Fee
Gresham House Energy Storage Fund
plc (LSE: GRID), the UK's largest fund investing in utility-scale
battery energy storage systems (BESS), has agreed substantial
reductions in the annual fund management fees incurred by the
Company.
Changes to annual fund
management fees
Under the old AIFM Agreement, the
annual fund management fee ("AIFM fee") was calculated quarterly as
a percentage of the Net Asset Value ("NAV") at the beginning of
each quarter, with the annual percentage charged at 1.0% up to
£250mn, 0.9% above £250mn to £500mn and 0.8% above
£500mn.
From 1 February 2025, the Company
and Gresham House Asset Management Limited ("the Manager") have
agreed that these percentage rates, rather than being applied to
NAV alone, will be applied to an equal weighting of (i) the average
of the closing daily market capitalisation during each quarter and
(ii) the NAV at the beginning of each quarter[1].
Impact on the Company and
further details
Assuming a share price of
41.05p[2] and the current NAV per share of
109.1p throughout the whole of 2025, these new arrangements would
result in assumed total annualised AIFM fee for 2025 of c.£4.1mn.
If the current NAV of 109.1p were to continue throughout 2025, the
AIFM fee based solely on NAV would be c.£5.7mn.
This new arrangement represents
potential annualised saving of c.£1.6mn (28%) versus an AIFM fee
based solely on NAV.
John Leggate CBE, Chair of Gresham House Energy Storage Fund
plc, said:
"We are pleased that we have been
able to negotiate new fee arrangements which better reflect the
current market conditions and investor sentiment. The new
arrangements further build on the significant alignment between the
Manager and shareholders by virtue of their existing substantial
share ownership[3]. The next three
years will involve a very intense workload for the Manager as the
Company delivers on its three-year plan and the Board will keep the
fee arrangements under review on an annual basis."
Ben
Guest, Fund Manager of Gresham House Energy Storage Fund plc &
Managing Director of Gresham House New Energy,
said:
"We recognise the past 18 months
have been tough for all shareholders. We are pleased to have
concluded these revised fee arrangements which further motivate the
Manager to deliver for shareholders. Our focus is squarely on
delivering against the three-year plan unveiled during the Capital
Markets Day last November."
For
further information, please contact:
|
Gresham House New Energy
Ben Guest
James Bustin
Harry Hutchinson
|
+44 (0)20 3837 6270
|
|
Jefferies International Limited
Stuart Klein
Gaudi Le Roux
Harry Randall
|
+44 (0)20 7029 8000
|
|
KL
Communications
Charles Gorman
Charlotte Francis
Effie Aye-Maung-Hider
|
gh@kl-communications.com
+44 (0)20 3882 6644
|
|
JTC
(UK) Limited as Company Secretary
Christopher Gibbons
|
GHEnergyStorageCoSec@jtcgroup.com
+44 (0)20 7409 0181
|
LEI:
213800MSJXKH25C23D82
About the Company and the Manager:
Gresham House Energy Storage Fund
plc seeks to provide investors with an attractive and sustainable
dividend over the long term by investing in a diversified portfolio
of utility-scale battery energy storage systems (known as BESS)
located in Great Britain and internationally. In addition, the
Company seeks to provide investors with the prospect of capital
growth through the re-investment of net cash generated in excess of
the target dividend in accordance with the Company's investment
policy.
The Company targets an unlevered Net
Asset Value total return of 8% per annum and a levered Net Asset
Value total return of 15% per annum, in each case calculated net of
the Company's costs and expenses.
Gresham House Asset Management is
the FCA authorised operating business of Gresham House Ltd, a
specialist alternative asset manager. Gresham House is committed to
operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.
http://www.greshamhouse.com/
Definition of utility-scale battery energy storage systems
(BESS)
Utility-scale battery energy storage
systems (BESS) are the enabling infrastructure that will support
the continued growth of renewable energy sources such as wind and
solar, essential to the UK's stated target to reduce carbon
emissions. They store excess energy generated by renewable energy
sources and then release that stored energy back into the grid
during peak hours when there is increased demand.
