Electra Partners announces transaction in relation to Premier Asset Management

POSTED 27 August 2014

Electra Partners is pleased to announce that it has agreed that funds under the management of Elcot Capital Management (“Elcot”) will make a substantial strategic investment in Premier Asset Management (“Premier”). Elcot will acquire a holding of 25.1% in Premier from Electra Private Equity (“Electra”) who will receive proceeds of £10 million. Electra will continue to hold a significant minority interest in Premier. Completion of the transaction, which would result in an increase in Electra’s diluted NAV per share of 14p from the valuation of Premier at 31 March 2014, remains subject to regulatory approval. A further announcement will be made on completion of the transaction.

Elcot has an option to acquire up to a further 25.1% from Electra for up to a further £10 million for a limited period of time.

Premier is an independent asset manager with over £3 billion in assets under management (as at August 2014) managing multi-asset, UK equity, global equity and fixed interest strategies. Electra first invested in Premier in 2007 and in 2009 made a further investment to support an acquisition.

Elcot is a privately-owned investment management firm led by Mike Vogel, formerly CEO of Framlington Group and before that of Prolific Financial Management. Mike has been Chairman of Premier since 2007 and, in parallel with Elcot’s strategic investment in Premier, will work closely with the management team led by Chief Executive Mike O’Shea to help accelerate Premier’s growth.

Alongside Elcot and Electra, Premier’s senior management and fund management team will own 25% of the company following completion of the transaction.

Alex Fortescue, Chief Investment Partner of Electra Partners, said:

“We’re delighted to be able to partner with Mike Vogel and the Premier team in this next stage of growth. The business has been transformed in recent years and now has the opportunity to accelerate this growth, not only by virtue of the industry’s attractive long-term fundamentals, but also because the Premier team has invested through the recession in building a really strong platform. The management team will play a vital role in taking this opportunity.”

Mike Vogel, Chairman and CEO of Elcot and Chairman of Premier, said:

“Premier has a really strong investment team which is generating some outstanding investment performance. As a result it’s growing fast. I’m looking forward to getting more involved with Mike O’Shea and the rest of the team as we continue to invest in distribution and in the brand in order to build a business of significant scale on this platform.”

Mike O’Shea, Chief Executive of Premier, said:

“I speak for the entire team when I say that we’ve enjoyed a great relationship with Electra Partners. They backed us through the recession, including with new capital to make an acquisition at the peak of the crisis. The transaction we’re announcing today reflects the exciting growth opportunity we’ve created. We all look forward to working with Mike Vogel, and with Electra, in the years to come.”

Tim Syder and Alex Cooper-Evans are responsible for Electra’s investment in Premier.

Today's announcement continues a busy 2014 for Electra following the £84 million investment in Hotter Shoes, the £82 million investment in Ogier Fiduciary Services, the £33 million co-investment in Innovia Group, the £15 million acquisition of Calrec and the further investments in CALA Group and Treetops Nurseries. In August 2014 the company announced its investment in DiGiCo and the subsequent formation of a new professional audio group, as well as the £20 million acquisition of Southview and Manor Park holiday parks.
 
In the six months to 31 March 2014, Electra Partners announced a record six month period for investment, investing or committing £250 million, building on record levels of investments and realisations in the year to 30 September 2013.

Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.

Ends

For further information please contact:

Andrew Honnor and Matthieu Roussellier, Greenbrook Communications    +44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Electra Partners    +44 (0)20 7306 3932


Note to Editors:

About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market buyout sector. During the last 25 years it has invested in excess of £4.1 billion in over 200 deals. As at 31 March 2014, the firm had funds under management of over £1.5 billion including capital available for investment of circa £300 million. 

Electra Partners’ flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.

The firm's major client is Electra Private Equity PLC (“Electra”), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra’s long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 31 March 2014, Electra has seen diluted NAV per share growth of 260% (equivalent to a ten-year annualised return on equity of 14%) compared to a 129% increase in the FTSE All-Share.

For further information please visit www.electrapartners.com.
 
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.