Electra Private Equity to move to corporate structure

The firm said in a statement the move will enable it to make savings of £25m, including the "elimination of carried interest", which totalled £80m over the preceding 12 months. It also said it it will be able to adopt a more flexible capital allocation policy based on shareholder returns.

The announcement marks the conclusion of the first stage of an extensive review process initiated at the start of 2016. The review was launched two months after shareholders voted in favour of activist investor Edward Bramson and Ian Brindle taking seats on the company's board of directors during a general meeting.

Four months after the board changes, the contract of Electra Partners to be the investment portfolio manager of Electra Private Equity was put on termination notice in late May. The listed LP said in a statement it had triggered the 12-month notice period for the termination of Electra Partners' contract, though it would continue "to explore a range of options including retaining the services of Electra Partners as investment manager under a mutually acceptable agreement".

There have also been a number of moves at the top of the listed private equity firm in recent months. Most recently it appointed the finance director of Thomas Cook, Gavin Manson, to the newly created role of chief financial officer. Manson's remit has included involvement in the ongoing strategic review.

The second stage of the review process will begin in June 2017, the month after the termination of Electra Partners' contract takes effect.

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• Topics
• LPs
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• UK / Ireland
• Electra Partners LLP
• Electra Private Equity
• United Kingdom