Acquisition Trail

Published 9 January 2013

Underperforming, mid-sized UK investment companies may be quaking in their boots at news venture capitalist, Edward Bramson, is sharpening his sword ahead of a new corporate raid.

Bramson, responsible for the 2010 hostile takeover of F&C Investments, is back on the acquisition trail with financial backing from investment guru George Soros.

The jury is still out on whether Bramson has succeeded in turning F&C around.

Over the past few weeks, facts came to light that Bramson, currently F&C executive chairman, is preparing to target another UK company after launching a second Guernsey vehicle, backed by Soros Fund Management.

Aviva and Threadneedle also reportedly have a stake in this venture.

The new fund, Sherborne Investors Guernsey B (SigB), will sit alongside the existing vehicle, Sherborne Investors Guernsey A, the one through which Bramson has a controlling interest (22%) in F&C.

SigB aims to “invest in a company which is publicly quoted, most likely on a UK stock exchange, which it considers to be undervalued as a result of operational deficiencies” and which it believes can be turned around.

Bramson has already made a good return on his investment; F&C shares are currently valued at 103.1p, a considerable rise from the 60p per share at which Bramson’s original purchase was made.

However analysts have expressed concerns around key staff losses – Charlie Porter, head of funds and investment trusts (formerly CEO of investment boutique Thames River Capital, acquired by F&C) stepped down in September last year.

While Karina Litvack, the company’s corporate governance and sustainable investment chief, left at the end of the year and will not be replaced.

On her departure, Litvack is said to have claimed her job no longer existed as a result of Bramson’s restructuring.

Some say this may have a negative impact on the company’s perception, given its work in the corporate governance space is highly lauded.

Furthermore, Bramson stepped down as chief executive in December but remains F&C chairman.

This has raised a few eyebrows, since a chairman should, in theory, be independent so as to represent the interests of all investors.

No mention has been made of when Bramson, through SigA, intends to sell his investment in F&C, and little is understood about what shape the company will be in once that happens?

2013 will be a challenging year for many investment managers as RDR bites and downward pricing pressures continue.

A wrong move or strategy could be the difference between staying off the menu for Bramson and Co and becoming the ‘special of the day’. срочный займ займ с просрочками на картубеспроцентный первый займзайм онлайн новые мфо

Inigo Rudio