Gresham House outruns expectations and charts 50 per cent AUM growth to more than £6bn
Alternative asset manager Gresham House expects to “significantly outperform” market expectations with assets under management (AUM) growth of at least 50 per cent to £6bn by the end of the year, as investors chase sustainable classes like forestry.
Its confident update to the market pitched adjusted operating profit at more than £18.5m – £3m above previous forecasts for the full year – and margins in excess of 32 per cent, excluding performance fees.
Gresham’s forestry division was at the heart of its AUM growth, and is expected to bring in £600m this year, as appetite for the asset class grows among institutional investors in particular.
One transaction – an Australian forestry mandate that Gresham was assigned by Axa Investment Managers in July – is forecast to rake in £400m alone, and represents the group’s effort to expand its international footprint.
“The Group has delivered exceptionally strong growth with accelerating momentum continuing into the fourth quarter of 2021,” the asset manager said in a trading update this morning.
Strong investment performance was also reported for the firm’s strategic equity unit, which has seen growth in its open-ended equity funds as well as venture capital trust (VCT) areas, which Gresham said had brought in £200m net inflows in the year to date.
“Our client base is growing and diversifying as investors seek solutions for long term sustainable investing that provide both best practice governance and strong performance,” said CEO Tony Dalwood.
“The structural growth drivers for the alternative asset management sector remain strong, and our investment this year in talent across the business puts us in an excellent position to drive further momentum and growth into the new year and beyond,” he added.
Gresham House’s shares rose as much as 7 per cent an hour after markets opened this morning.