InvestmentsMay 26 2016

Electra serves trust manager with termination notice

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Electra serves trust manager with termination notice

The board of the Electra Private Equity trust has issued a termination notice regarding its management and investment agreement with Electra Partners.

The trust said in a statement it continued to explore all options for the company as part of its ongoing strategic review, including the possibility of retaining Electra once the one-year notice period expires.

Neil Johnson, chairman of Electra Private Equity, said: “The decision to serve notice to Electra Partners is a pragmatic step that will allow the board to act on any specific recommendations of the review in a more timely way.”

The trust launched a strategic review following a campaign by activist investor Edward Bramson, who joined the board in November 2015, to overhaul the company.

Alex Fortescue, managing partner of Electra Partners, responded this morning (May 26) by saying the termination of the contract was a “surprise and a disappointment”.

He said: “We are proud of our exceptional performance record. The termination of the contract is a surprise and a disappointment. However we expect Electra Partners to continue to thrive with access to significant capital resources.”

In its interim update, Electra Private Equity said it has established an “executive function to provide ongoing support to the board”, with non-executive director Mr Bramson appointed as unpaid interim chief executive while the search for a chief financial officer continues.

The trust also announced the appointments of David Lis, former chief investment officer at Aviva Investors, and Paul Goodson, former managing director of Barclays Private Equity, as non-executive directors with immediate effect.