Epiris returns £1.5bn to Electra over eight-month period

The GP is approaching the end of its 12-month notice period as investment portfolio manager of Electra, with the termination period due to lapse on 31 May.

According to Electra's recent financial results for the six-month period ending in March 2017, Epiris generated £1.07bn of returns in half a year. The GP said in a statement it had generated an additional £468m since the end of that period.

Over the six-months from September 2016 to March 2017, Epiris generated a NAV per share total return of 10%, according to a statement. The GP also said it generated an NAV per share total return of 30% over the last 12 months.

The announcement comes shortly after the GP's portfolio company Axio Group sold TechInsights to Oakley Capital, marking the seventh and final "major realisation" from the group. The investment in Axio generated total returns of around £455m, representing a 5x return and an IRR of 76%.

Epiris has made numerous exits since the termination notice was issued. Since March, it has sold its stakes in home builder Cala Group and residential equity release business Retirement Bridge to Patron Capital Partners for a combined £94m; its aforementioned remaining interest in Axio; and its remaining 17.8% stake in listed tenpin bowling operator Hollywood Bowl for £40m.

Epiris's notice of termination as Electra's investment portfolio manager came as part of an ongoing strategic review set in motion by the LP's activist investor Edward Bramson in January 2016. Electra managing partner Alex Fortescue said at the time the GP was proud of its "exceptional performance record", adding that the termination was both "a surprise and a disappointment".

In the latest statement issued by the GP, Fortescue said: "This is the last set of results we will announce for Electra and we are very pleased to be able to go out on a high. Under our management, Electra has been the best-performing London-listed private equity investment trust, and has comprehensively outperformed broader equity indices over the past 10 years."

In October 2016, Electra concluded the first phase of its review, announcing it is to move away from its status as a listed investment trust to a corporate structure. The LP said at the time that the move will enable it to make savings of £25m, including the "elimination of carried interest".

Epiris (then known as Electra Partners) was recently featured as part of the unquote" In Profile series.

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