Gresham House AUM rises 50% in 2016

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Assets under management at boutique asset manager Gresham House have risen 50 per cent in 2016, the company’s annual results show.

The company, which transitioned from an underperforming investment trust to a specialist asset manager two years ago, had £363m AUM at 31 December compared to £242m in 2015.

The company’s revenues have also more than doubled to £4.3m from £1.4m in 2015.

The largest strategy for the asset manager is Gresham House Forestry, which has seen AUM grow by 20 per cent to £247m over the last year.

The asset manager also operates two listed investment companies: private equity strategy  LMS Capital, which has a current market cap of £40.4m, and £30.4m Gresham House Strategic, which invests in UK smaller companies with “private equity style techniques” for portfolio construction.

Chief executive Tony Dalwood says the firm’s aim is to produce sustainable and increasing profits through growth in AUM.

 “The positive recent developments accelerate our path to profitability in the nearer term and hence long-term value creation for shareholders. We continue to work on a number of organic and acquisition initiatives, including the recently announced Gresham House British Strategic Investment Fund with local government pension schemes and other long term investors.”

The firm’s adjusted operating loss reduced to £1.6m in 2016 compared to £3.1m the previous year.

“In 2015 we established the foundations of a specialist asset manager and 2016 has seen us build Gresham House into a credible specialist player whilst developing the brand. This has been enhanced by progress in early 2017, which has generated additional momentum that will drive further growth in the coming year.”