In a trading update for the financial year ended 31 December 2020, Gresham House (GHE ) said it has delivered ‘strong organic growth’ rates as well as having executed ‘attractive acquisitions.’
The specialist alternative asset manager outlined that its assets under management ("AUM") increased by around 42% to £3.9bn over the period (FY19: £2.8bn), showing an organic growth in AUM of £1.0bn (35%) despite ‘exceptionally’ difficult market conditions.
This growth was driven by strong fundraising performances across the Real Assets and Strategic Equity divisions, which it said has increased the depth of its institutional client base.
Gresham House Energy Storage Fund (GRID) raised £120m, Gresham House Forest Fund I LP raised £108m and the Baronsmead VCTs raised £38m gross in the second half of the year.
Gresham also benefited from balance sheet investments in battery storage projects through the wholly owned subsidiary Gresham House Devco, and their subsequent sales to GRID.
‘The overarching theme of sustainability continues to be highly relevant to its investment strategies and remains appealing to clients, which provides a strong tailwind for AUM growth,’ it noted.
Shares in Gresham House were trading 2.22% higher this morning at 807.5p following the announcement.
Gresham expects to deliver full-year adjusted operating profits ahead of market expectations despite continued investment in resources to deliver GH25 ambitions – it said it has built ‘strong momentum’ against this previously outlined five year strategy, GH25.
Meanwhile, the acquisition of Appian Asset Management, subject to approval from the Central Bank of Ireland, is expected to accelerate international expansion plans for the Company with the establishment of a regulated EU-based platform.
It will enable Gresham to develop existing strategies in Ireland and Europe ‘with a particular focus’ on targeting sustainable infrastructure, social housing, specialist equities and forestry.
"In a challenging environment, we have delivered strong progress against our strategic and financial objectives, including delivering strong organic growth rates and executing attractive acquisitions,” commented Tony Dalwood, Chief Executive of Gresham House.
He added, "Momentum has carried through into the start of 2021 as we remain well positioned to benefit from the increasing focus on sustainable investments alongside continuing to invest in talented people to support the ambitions of the Company."
Gresham House will publish its full year results for FY20 on 11 March 2021.
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