Electra board steps up criticism of activist shareholder Sherborne

Following a new request by activist investor Edward Bramson – via his investment company Sherborne – to be appointed to the listed private equity firm's board, Electra has called for a general meeting and vote to be held on 5 November in London.

In a letter to shareholders, Electra board chairman Roger Yates once again defended the firm's track record and strongly criticised Bramson's strategy. Yates insisted that Sherborne's track record is "patently misaligned" with Electra's own investment strategy, particularly when it comes to holding periods. According to Electra, Sherborne has been "short-termist", focusing on one investment at a time for a short spell: the average holding period of Sherborne's prior disclosed UK investments (4imprint, F&C Asset Management, Spirent Communications, Elementis and 3i Group) was approximately 24 months, according to Yates – and as low as 10 months in the case of 3i.

Yates also zeroed in on Sherborne's alleged focus on cost-cutting, contrasting it with Electra's growth-orientated strategy. "Shareholders will remember that Sherborne's track record and investment objective are firmly activist, characterised by cost-cutting and short termism, and your board considers that the appointment of Sherborne nominees could be materially damaging to the success of a long-term private equity mandate where the strategy for creating value is based on growth," Yates wrote, before recommending that shareholders vote against the resolutions put forward by Sherborne.

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• Electra Private Equity