TIDMMIX TIDMMIG4 TIDMMIG TIDMTTM
RNS Number : 3878L
Mobeus Income & Growth VCT PLC
10 September 2021
10 September 2021
Mobeus Income & Growth VCT plc
LEI: 213800HKOSEVWS7YPH79
Mobeus Income & Growth 2 VCT plc
LEI: 213800LY62XLI1B4VX35
Mobeus Income & Growth VCT 4 plc
LEI: 213800IFNJ65R8AQW943
The Income & Growth VCT plc
LEI: 213800FPC15FNM74YD92
(together the Mobeus VCTs)
Proposed change in management arrangements
The boards of the Mobeus VCTs (Boards) advise that Mobeus Equity
Partners LLP (Mobeus), the investment adviser to the Mobeus VCTs,
has today announced the sale of its VCT fund and investment
management business to a subsidiary of Gresham House plc (Gresham
House). As part of the sale, the Boards have agreed to the novation
of the investment advisory arrangements from Mobeus to Gresham
House subject to completion of the sale.
Gresham House and the enlarged VCT team
Gresham House is a specialist alternative asset manager listed
on the London Stock Exchange with GBP4.7 billion in assets under
management (at 30 June 2021). Gresham House is a fast growing,
specialist fund group, with a long-term commitment to the VCT
industry and is the existing investment manager of the Baronsmead
Venture Trust plc and Baronsmead Second Venture Trust plc (the
Baronsmead VCTs).
Mobeus and Baronsmead are two of the leading names in the VCT
industry. The transaction combines two investment and operations
teams with market-leading track records, each with more than 20
years' heritage and experience, creating a significant platform in
the VCT market across over GBP850 million of shareholders' funds.
Each of the Mobeus VCTs' and the Baronsmead VCTs' brands will
retain their individual investment strategies to offer investors
the choice of two high-quality offerings. The Mobeus VCTs will
remain focused on unquoted investments, whilst the Baronsmead VCTs
will continue to invest in both unquoted and public companies
traded on AIM.
The entire core management, investment and operational teams
involved with the Mobeus VCTs will all transfer to Gresham House in
connection with this transaction to form a significant enlarged
team that will manage both the Mobeus VCTs and the Baronsmead VCTs.
A wide-ranging multi-year agreement has been put in place between
Mobeus and Gresham House to enable a smooth transition and
continuity of management of the VCTs (including continuing to use
the 'Mobeus' name for a period).
The Boards are pleased that Trevor Hope and Clive Austin, the
two leading partners involved with managing the Mobeus VCTs'
investment portfolios, are joining Bevan Duncan and Ken Wotton, who
lead the investment management of the Baronsmead VCTs, in becoming
the senior management team of the Strategic Equity division within
Gresham House. Trevor and Clive will remain responsible for the
investment, portfolio, and fund management of the Mobeus VCTs,
alongside their investment and operations teams. They will be
supported in the transition by Mobeus founder partners Mark Wignall
and Rob Brittain who will act as consultants to Gresham House.
The Boards' considerations
After careful consideration and due diligence, the Boards
believe that consenting to the novation of the investment advisory
arrangements is in the interests of the Mobeus VCTs' shareholders.
The Boards expect the creation of the enlarged VCT team to be well
received by the market as creating an exciting and potent
commercial force that should lead to enhanced prospects for
Shareholders. In the context of a VCT sector that is evolving, this
view is predicated on:
-- Scale Advantage - The integration of the Mobeus and
Baronsmead VCT teams within Gresham House creates one of the
largest VCT teams in the sector with the coverage, experience,
contacts and know how to access more and higher quality investment
opportunities. The greater breadth and depth of resource in
portfolio and talent management should also be valuable in
assisting the Mobeus VCTs' existing portfolio companies to grow
successfully.
-- Continuity - Trevor Hope and Clive Austin will continue to
lead the VCT team and will be supported in the transition by Mark
Wignall and Rob Brittain. This management group is well known and
has been highly regarded by shareholders for a considerable period.
The Boards are confident that the team will continue to build the
Mobeus VCTs' portfolios and enhance their value. Gresham House's
investment philosophy is similar to that developed over many years
by Mobeus, and the procedure for undertaking due diligence and
approving new investments will be substantially the same as
before.
-- Portfolio Diversification - The access to a much larger asset
base and investment opportunities should enable the combined VCT
investment team to build more diversified VCT portfolios across a
broader range of sizes and stages of investment. The Boards believe
that this combined VCT investment team will be a major force in the
supply of capital to the VCT sector and it is anticipated that the
team's enhanced market position should attract strong deal
flow.
-- Investment in Capability - The Mobeus VCT investment team has
delivered outstanding performance over many years, but it has
become clear that the changing demands of the market mean that the
requirement for additional investment in people, technology and
processes could become constrained within the framework of the
existing Mobeus partnership structure.
The Boards can confirm that no material changes are being made
to the terms of the investment advisory arrangements. Shareholders
can also be assured that the Boards' track record of governance and
independence will be maintained.
Timetable and conclusions
The Boards consider that the change in management and advisory
arrangements is in the interests of Shareholders and look forward
to working with Gresham House to achieve a continued strong
investment performance for the Mobeus VCTs' shareholders.
The sale, and consequently the novation of the Mobeus VCTs'
investment advisory arrangements, will take effect on or around 1
October 2021 following satisfaction of a number of technical
conditions and completion by Gresham House of a placing to fund the
acquisition.
The Boards are also aware that there is strong demand to
subscribe for new shares in the Mobeus VCTs. As such, the Boards
will, following completion of the novation of their investment
advisory arrangements to Gresham House, be considering raising new
additional funds and launching offers for subscription in the
2021/2022 tax year. Further announcements will be made in due
course.
For further information please contact:
Trish Standaloft
Mobeus Equity Partners LLP
Company Secretary
Tel: 020 7024 7616
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