Gresham House sees AUM boost of 11%

Gresham House sees AUM boost of 11%

Gresham House has reported an 11 per cent increase in its assets under management for the first half of 2022, with its book now totalling £7.3bn.

Within this was £0.5bn or 8 per cent of growth was organic, while acquisition activity totalled 3 per cent as the firm increased its number of institutional clients and oversaw its international expansion. 

This included the acquisition of Burlington Real Estate in Ireland, which added £0.3bn in AUM, and the purchase of a £49mn forestry and carbon credit portfolio in New Zealand on behalf of one of its institutional clients. 

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Net core income rose to 61 per cent in the period to £37.2mn, up from £23mn in the first half of 2021.

Chair of Gresham House Anthony Townsend said this reflected the impact of organic growth and the first full six-months of revenues from the Mobeus VCTs acquired in September 2021. 

Meanwhile, adjusted operating profit was up 91 per cent in the same period to £13.2mn, an increase from £6.9mn in the first half of 2021.  

Commenting on the results, Gresham House chief executive Tony Dalwood said strong results were delivered despite the challenging macroeconomic environment.

“Our performance illustrates the strength of investor appetite for the asset classes in which we specialise and has enabled us to further enhance the depth and breadth of our client base.

"Whilst we are cognisant of the market environment, we are confident that momentum for our asset classes will be sustained into H2 as we continue to raise funds, make further profitable progress against our GH25 strategy and to deliver value to all our stakeholders,” Dalwood said. 

Elsewhere, Townsend said the group’s fundraises identified in its 2021 annual report are on track across battery energy storage, forestry, shared ownership housing, equity funds and VCTs.

Townsend also noted that the groups balance sheet has been enhanced by the disposal of the Rockwood Realisation (formerly Gresham House Strategic) investment, with proceeds of £11.8mn in the period delivering a return of over two times capital invested. 

“This demonstrates the group's cultural desire to use its balance sheet to align with clients and deliver returns to shareholders,” Townsend said.

The firm’s cash and liquid assets dropped by 11 per cent across the period as the firm used its balance sheet cash to invest in and develop projects to grow its long-term AUM. 

Gresham House now has over 200 employees across offices in England, Scotland, and Ireland.