Rob Brook has led a management buy-out of the investment manager which oversees the Tamar European Industrial Fund.
The purchase of Tamar Financial Services was carried out by a new holding company, Tamar Capital Group, which is ultimately owned by individuals within the team who have been responsible for managing TEIF’s portfolio since the company’s inception in September 2006.
TCG will continue to be led by Rob Brook, and will have initial assets under management of approximately £600m with offices in London, Paris – led by Chris Pope, Berlin and Dublin.
Brook will remain the lead fund manager to TEIF.
As part of the buy-out, the fund’s board and TCG have revised the terms of the original TFS management contract to “incentivise” the manager to maximise returns as it sells down the fund’s Scandinavian assets and to drive other initiatives.
A reduced fixed base fee has been introduced starting at £1.5m for 2012 which reduces in subsequent years and is supplemented by performance related fees which focus on the sale of the Nordic portfolio and the creation of value in the remaining assets and jurisdictions.
Total fees paid in any one year will be capped at 4.99% of the fund’s NAV as at 31 December of the previous year.
TEIF chairman, Giles Weaver, said: “Since formation, the company has benefited from the continuity of management of the Tamar team and is therefore delighted to have secured their ongoing commitment to the fund by maintaining TFS as its investment manager under its new ownership by the investment team.
“We are confident that the new fee structure will further strengthen the company’s prospects by acting as a strong incentive for the team to maximise returns to shareholders.
“This will be achieved through a number of potential avenues, including the orderly disposal of assets where optimal prices can be achieved on behalf of all our investors, with the proceeds either being returned to shareholders or recycled to make only short-term accretive acquisitions.”
bridget.o’connell@estatesgazette.com
