InvestmentsApr 14 2022

Gresham House inflows more than double in 2021

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Gresham House inflows more than double in 2021
Burak Kebapci/Pexels

Gresham House saw its inflows more than double in 2021 to reach £1.2bn.

The alternative asset manager saw net inflows of £1.2bn in the year to December 31, an increase from the £500mn seen in 2020.

The group’s strategic public equity and private equity funds saw flows of £206mn, with its forestry asset funds receiving £611mn and new energy and sustainable infrastructure seeing £258mn in flows.

Assets under management grew from £4bn to £6.5bn, aided by the acquisition of Appian Asset Management, now Gresham House Ireland, which added £600mn in Aum.

Gresham House also acquired the venture capital trust business of Mobeus Equity Partners for £36.1mn in September last year.

The deal brought four VCT contracts under Gresham House’s control - Mobeus Income & Growth VCT, Mobeus Income & Growth 2 VCT, Mobeus Income & Growth 4 VCT and The Income & Growth VCT. The four have a combined assets under management of £369mn. 

The group raised £42mn through a placing alongside the acquisitions.

Gresham House has three other private equity funds, the Income & Growth VCT, and the Baronsmead Venture Trust and Second Venture Trust, and in total runs £887mn across all these brands.

Tony Dalwood, chief executive of Gresham House, said the group has made “exceptional progress” in the year.

“We are focused on private assets which exhibit long-term superior investment returns alongside sustainability characteristics.”

Dalwood highlighted the impact the war in Ukraine will have on its investments, as well as the continuing tailwinds from the pandemic.

“These issues will see risk premia rise and have consequent impacts on valuations,” he said. 

“It is important to remember that our asset classes and philosophy are long term. With that investment horizon in mind, the growth in demand for our product areas should continue its positive momentum.

“Despite the current macroeconomic environment and geo-political events, we are confident of further growth throughout 2022 as we continue to deliver value to all our stakeholders.”

In light of its performance in 2021, Gresham House revised its target Aum to £8bn by 2025.

The group’s net core income rose 51 per cent to £61.6mn, and operating profit rose 67 per cent to £20.2mn.

Gresham House will pay a final dividend of 10p.

sally.hickey@ft.com