Gresham House's Wotton: Now is the time for a 'private equity approach to public markets'

Active dialogue with the board

Elliot Gulliver-Needham
clock • 2 min read
Ken Wotton of Gresham House
Image:

Ken Wotton of Gresham House

A “private equity approach to public markets” is primed to succeed post-pandemic, argued Ken Wotton of Gresham House, citing his £220.6m Strategic Equity Capital trust (SEC) as “a real pure play” towards the goal.

SEC, which invests predominately in publicly-quoted UK small caps, has only 18 holdings, with the majority of the portfolio in just seven. As the trust typically targets smaller companies, Wotton said it means it often holds "five-to-ten percent equity stakes, which means we are one of, if not the largest external investor in the company".   This provides it with "enough stakes to have some influence," he added.  As an example, the fund manager pointed to Inspired Energy, which was first invested in by Gresham's VCT fund. Since listing, the SEC has recently become the company's ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Green

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Ken Wotton and Brendan Gulston, co-managers of the LF Gresham House UK Multi Cap Income fund

Five rules for resilience amid rocky markets

Barrage of headwinds

Ken Wotton and Brendan Gulston
clock 04 August 2022 • 5 min read
Chris Hutchinson of Unicorn Asset Management

The Big Interview: What I learned after being dropped from Hargreaves Lansdown's Wealth Shortlist

'I’ve no interest in falling out with people'

clock 04 August 2022 • 6 min read
Trustpilot