The acquisition of specialist alternative asset manager Gresham House, is a big vote of confidence in the UK’s alternative investment industry, Nicholas Hyett, investment manager at Wealth Club, has said.
It was announced earlier today that US investment firm Searchlight Capital had agreed to buy UK asset manager Gresham House in a £470mn deal, sending shares in the London-listed group up more than 50 per cent.
Under the terms of the deal announced on Monday, Gresham House investors will receive £11.05 in cash, a 63 per cent premium to where the company’s shares closed on Friday.
Gresham House manages about £8bn and invests mainly in forestry, and sustainable assets such as, renewable energy and battery storage.
Hyett said Gresham had been an important driver of capital behind major government initiatives to decarbonise the economy and spur innovation through investment in start-ups.
He added: “Those investment categories have struggled a bit in a rising interest rate environment, but Searchlight clearly sees the long-term potential.
“In fact, “opportunistic acquisition of a temporarily out of favour investment” sums up this deal all over.”