Gresham House disposes of entire Rockwood Realisation holding
Updated : 15:21
Alternative asset manager Gresham House announced the disposal of its entire 23.7% shareholding in Rockwood Realisation (RKW) on Monday.
The AIM-traded firm had previously managed the fund, formerly known as Gresham House Strategic (GHS), for six years from 2015.
A change of manager was announced in October, and the fund was subsequently renamed.
As part of the transaction, the group said it had agreed to acquire an investment in ‘Hanover Co-Invest S.C.A. SICAV-RAIF Sub-Fund 1’ from RKW for £0.86m.
The Hanover Co-Invest acquisition was described as “complementary”, as part of the company’s ambition to grow its strategic equity platform.
“The disposal of the Gresham House shareholding in RKW is in line with its stated strategy of typically investing directly into vehicles which it manages,” the board said in its statement.
“The performance of GHS under Gresham House management over the six years delivered a total return of 141% - a substantial outperformance versus the 74% of its benchmark - and provides a further example of Gresham House generating shareholder value from the use of balance sheet capital.
“As a result of the disposal, Gresham House will have an additional £8.5mn of cash on its balance sheet to support its strategic growth priorities.”
At 1238 GMT, shares in Gresham House were up 7% at 856p.