Grant Davidson

#Hargreaves_Lansdown Hargreaves Lansdown backed the £5.4 billion bid for the FTSE 100 fund manager today from a private equity consortium, a deal that will end its time as a listed company. The Bristol-based finance firm has been listed in London since 2007. It said today that the final offer valued its shares at 1140p in cash and would include a 30p per share dividend for the financial year which ended on 30 June. Compared to the Hargreaves Lansdown share price before the approach was first made in April, the price is at a premium of over 54%. The consortium is made up of CVC, Nordic Capital and ADIA. Hargreaves Lansdown is named after its founders – Peter Hargreaves and Stephen Lansdown – who set it up as an investment tip sheet. It now runs a state-of-the-art trading platform from which clients can run their own portfolios and pensions. https://lnkd.in/dKpizupy

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#Aegon Aegon has strengthened its largest workplace pension default fund with enhanced ESG integration and private markets investment offerings. The 700,000 members currently invested in the £12bn universal balanced collection fund will benefit from improved returns, value for money and a wider range of investment opportunities as a result of the transformation, set to take place from Q3 this year. The fund, available to investors in Aegon’s ‘Retirement Choices’, ‘One Retirement’ and some other platform products, will offer a bespoke solution managed by three asset managers – with private market allocations housed within long-term asset fund (LTAF) structures (subject to regulatory approval). https://lnkd.in/d2RvqHmX

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Really enjoyed being on the panel at Private Equity Insights conference in London last week discussing best sectors for Private Equity going forward. PE investments are long term and it’s important for PE to invest in sectors with long term positive trends. Operational improvement is key for PE managers to deliver best returns and hence specialization is a key trend we can observe in the industry. In our selection of managers, Cubera Private Equity focuses on their sector expertise and ability to improve businesses.   #privateequity

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Great webinar with FT Live on the Global M&A Outlook in the EMEA Region. There is a feel of the optimism in EMEA’s M&A landscape, with private equity leading the charge and valuations on the rise. Geopolitical certaintly, growth agenda, and interest rates certainly will provide confidence in the market, therefore, the future is looking really good. #wheredealsaremade #privateequity #mergers

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This month, I appeared on the FT Advisor podcast speaking with Simoney Kyriakou at the Financial Times about the growth of Independent Investment Management Initiative and what this means for the outlook for specialist asset managers. We touched on regulation, DE&I, innovation and the opportunities for the most entrepreneurial firms and the most active, active asset managers in our sector. What a pleasure, thank you Simoney Kyriakou. #boutiques #assetmanagement #growth

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Have a quick listen to Dave and Nigam from BestEx providing a clear and concise case for why you may want to consider utilising order aggregation in your execution. https://lnkd.in/dP7_H-9z

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#InvestorsDilemma Marc Rowan, CEO of Apollo, warns of changes ahead for financial services, as the industry moves away from a period of consecutive tailwinds and towards a potential phase of more headwinds than usual. In light of this, Rowan questions traditional allocation splits between public and private markets, suggesting a closer look into private markets may be necessary. This short and noteworthy listen highlights the importance of preparing for the #ShiftingWinds of the #FinancialServices.

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An uncharacteristically readable piece from McKinsey & Company.   The central themes of 1) prioritising operational value creation from the outset and 2) ensuring alignment with value creation objectives will enable financial sponsors that prioritise operational efficiencies to outperform are absolutely correct. With hold periods extending, sponsors' execution of the plan needs to be increasingly clear when it comes to exit. Easier said than done, of course…

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💸SI Partners Global has been predicting a big year for Private Equity exits💸 Friday’s announcement of OakNorth Bank and HSBC’s investment into Croud is an unexpected move; why is a PE-backed company 5 years into an investment cycle using bank debt to fund their next phase of growth? 🤔 2019 was a tipping point for PE investment in the marketing services sector – some ~£26bn across digital agencies and tech consultancies (42%), marketing services (41%) and strategic consulting (24%).    The majority of these investments (70%+) include a buy-and-build strategy to generate the returns required, and our research shows that on average PE sponsors hold for 5 years in this space.    But – the market faltered in 2023, as broader economic challenges made it difficult for sellers to exit at their expected valuations. Many saw their performance impacted by reduced client spends and this has been compounded by the increasing cost of capital from higher interest rates. Both made it more challenging to reach their valuation targets. 🎻 📉   An added complexity here is that over the last few years PE funds have been willing to apply comparatively high valuations versus the long-term averages in the sector – and which have been consistently applied by the established corporate buyers. Funds justify this on the basis that their minimum level of return is well-protected, so much of the future risk sits with management shareholders who get comfortable with it due to the generous level of cash-out they received on day one.   But at some point there needs to be another pay-day. And unlike listed companies that have a transparent share value over time, PE-backed businesses define their own internal valuation, which is used to incentivise up-and-coming management through ‘sweet equity’ and the like.   As a result, high value expectations are effectively embedded in the structure and required for an exit to make sense – especially for management sellers. But most corporate buyers are trading at lower multiples than these PE-backed groups are applying to themselves, and higher interest rates are impacting valuations for secondary investments that require more leverage.  📈 ✋🏻 🛑 So despite plenty of demand in the market from both corporate and Private Equity buyers, prices that were effectively set at the peak of the market are proving to be an obstacle to in today’s market.   Could this explain why Croud opted for bank debt to fund further expansion rather than refinancing with another fund or selling to a strategic buyer? Quite possibly.    Croud has shown strong growth but has made only a few, relatively small acquisitions since LDC invested. Having tested their value in the market, perhaps they’ve concluded that their best option is to double down on growth through M&A as an interim step until they can find the price they want. 

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Great to be able to contribute to this interesting piece on UK markets by David Craik at interactive investor. We’re continuing to see enormous amounts of value in the UK at BRI Wealth Management plc, especially in the mid and small cap end of the market. Investment trusts look even better value! #UKplc #investing #investmenttrusts

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UEM has published its half yearly report to 30 September, 2024. UEM’s NAV performance since inception is ahead of the MSCI EM total return Index. UEM has achieved this together with a rising dividend payout; lower volatility; and with a portfolio which is significantly differentiated from the MSCI EM Index, reflected by UEM having an active share of over 98%. For investors who want exposure to #emergingmarkets, excellent performance and comparatively low levels of volatility, UEM should be a compelling investment.

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Excellent use of AI to create value for customers.

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Nice to see Joe Easton’s positive article focusing on London’s successes, far too often the commentary of London as a financial hub is overly negative. The stats show that the City remains an unrivalled centre, one which has the potential to attract significantly more activity and capital for the benefit of the whole of the UK. London Still Europe’s Share Sale Capital Even With Few IPOs - Share sales of $11.3 billion dwarf other European cities - UK remains in top spot even after rate hikes spurred downturn https://lnkd.in/eRtShiNM

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My colleague, Ian Mawdsley, Chief Product Officer of Broadridge Trading and Connectivity Solutions, spoke at tradetech and highlighted challenges the capital markets firm face when considering buy VS build approach. It is time to move from the 'buy OR build' cycle that the market has been in for the last 30 years into the ‘buy AND build’ cycle. Read the latest article by Ian: http://spklr.io/6043s4bD #TradeTech #CapitalMarkets

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The common objective in these exciting new relationships is the need for a robust framework for self sufficiency to the benefit of all stakeholders.

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It was fantastic to speak with Vanessa Bingle of Alpha FMC and Helene Winch of Premier Miton Investors about the stewardship expectations in the UK SDR and beyond during our recent webinar. So many valuable insights to mention, but here are my key takeaways: - While stewardship codes have done a lot of the heavy-lifting in terms of firm-level reporting, the UK SDR expectations are focused at the fund-level and so it's crucial to embed stewardship into the investment decision-making process, ensuring that engagement and voting activities align with the fund's investment objectives. - Effective compliance with the SDR hinges on the ability to collect, manage, and report stewardship data accurately. Investing in advanced data management systems and leveraging technology to automate processes can significantly enhance transparency and reduce the risk of greenwashing. - Evidence, evidence, evidence! - Focus on the quality of stewardship activities rather than the quantity. Consistent analysis of engagement effectiveness and progress is crucial for demonstrating impact. - Investment and stewardship teams need to work together more than ever. - When making SDR-related disclosures, think clearly about what an end-investor would find meaningful. The video is available on-demand here: https://lnkd.in/efb6ft3h #stewardship #esg #uksdr #responsibleinvesting

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Another great example of the added value that Gambit Corporate Finance LLP provides to shareholders looking at their exit strategy and options. For over 30 years we have consistently delivered outcomes that exceed expectations. If you are considering your exit strategy and want to evaluate your options please contact me directly on [email protected] or 07796 441330. #corporatefinance #mergersandacquisitions #exit #addedvalue #succcession #successionplanning #options

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A recent article in the Financial Times by Emma Dunkley highlights a concerning trend. Many people in the UK are choosing to keep their money in cash rather than investing.   It is currently estimated that there is over £430 billion of money sitting in savings accounts. While it’s understandable as cash feels safe, tangible, and accessible, it underscores a critical need for better financial education in the UK. As the article highlights, if you had invested £1,000 in the UK stock market a decade ago, today it would be worth nearly twice what the average cash ISA has earned in that time. Yet, millions of Britons still choose cash over investments, driven by fears of complexity, market risk, and a lack of accessible and affordable financial advice.   The key to overcoming these challenges is education, guidance, and access.   At Capital.com, we believe that raising financial literacy standards is essential for empowering individuals to make informed investment decisions. By improving financial education, we can help people understand the benefits of investing, which in turn can lead to greater financial security and prosperity for all.   Let’s work together to promote financial literacy and create a more financially inclusive world.   #FinancialEducation #Investing #FinancialLiteracy #CapitalCom #FutureOfFinance https://lnkd.in/dsWFinAD

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