Bramson increases Electra stake

Sherborne first invested in the listed private equity house in late February, buying a combination of shares and swaps, which amounted to a 10.24% stake. This initial purchase caused Electra's share price to increase by 250 pence to £27.50. Sherborne raised its interest in the company on further occasions, on 4 March and 6 March. At the time of writing, Electra's share price stood at £27.24.

Bramson's interest in Electra came after he realised his investment in 3i in November last year, in a move which rewarded him with a 38% return.

While his mere presence as a shareholder has boosted the listed private equity house's share price, there are growing concerns over his activist approach. In 2011, Bramson led a boardroom shake-up at F&C Asset Management, which saw the firm's chairman ousted and a general overhaul of the company. However, Bramson remained a passive investor when involved with 3i.

While the equity markets are heating up, many private equity houses have taken advantage of the buoyant mood among public investors by listing portfolio companies. However, Sherborne's increased focus on listed private equity firms could finally see a resurgence in the value of these vehicles and bring about much-needed improvements to average NAV discounts.

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• Topics
• UK / Ireland
• GPs
• Electra Private Equity
• 3i
• United Kingdom