Bramson's Electra holding exceeds 25% after latest purchase

Sherborne Investors, Barmson's investment vehicle, recently secured further shares and converted bonds in Electra Private Equity. This resulted in the activist investor's total stake exceeding the 25% threshold on 17 February. Sherborne's total voting rights in the business now amount to 25.16%, compared with around 19% back in May last year.

The move should spark fresh speculations as to Bramson's intentions. A feud between the activist investor and Electra escalated for most of last year, with Bramson's vehicle steadily building up its stake before requesting that three new directors (including Bramson) be appointed to the board of the listed private equity firm. Furthermore, Bramson expressed his intention to lead a strategic review of the company following the board appointments.

These demands were shunned by Electra's board, which argued Bramson and the other proposed directors wouldn't be independent, and also questioned Sherborne's track record. Sherborne subsequently called for a shareholder vote on its propositions in September. Around 62% of shareholders voted against Sherborne's motions. Although vindicated, the private equity firm announced its intention to conduct a review of its its fee arrangements, capital structure and distribution policies.

Electra Partners, which manages Electra's investments, removed its 1.5% management fee and committed to an annual dividend set at 3% of NAV earlier this month. The company's board also agreed changes to Electra's primary fund investment strategy. Its listed investments and primary fund investments, which represent 8.5% of its investment portfolio, are no longer classed as part of its core portfolio. Furthermore, the firm will now reduce its primary fund investing to increase its focus on direct investments.

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