FINANCE: Highcross is considering options for the future of its business – including a potential sale.
The US-backed opportunity fund manager has appointed boutique M&A advisory firm Accord Capital Partners to advise on options, which could also include an injection of capital or a partial sale.
It is understood to have held talks with a number of private- equity investors over a sale of the fund management platform and its funds – rather than just the platform – or a recapitalisation.
Interest is expected to come from firms including Ares Management, Orion Capital, Patron Capital and KKR in the process known as Project Warwick. It is also close to Oaktree Capital Management and Morgan Stanley, after last year forming joint ventures to provide asset management for the firms’ regional property portfolios.
As part of the strategic review, Highcross has appointed Deloitte to dispose of two portfolios of non-core assets from its £900m industrial and office portfolio.
The accounting giant is expected to approach a handful of investors with £120m of assets that have come out of the Highcross Regional UK Partners I & II funds.
In April Estate Gazette revealed that Highcross was considering a sale of its 50% stake in North East developer UK Land Estates, which has an 11m sq ft portfolio spanning 25 industrial estates (26 April, p51).
Highcross, founded by industrialist Sir Peter Michael, is still considering the sale but a final decision is on hold while the wide-ranging review takes place.
The move comes less than a year after managing director Peter Gubb retired from the business and was replaced by finance director Mike Megan, which triggered a wider management reshuffle.
Highcross has launched and manages a series of three opportunistic funds – most recently its 10-year Highcross Regional UK Partners III, which raised £436m of equity in 2008.
All parties declined to comment.
bridget.o’connell@estatesgazette.com
