A group of prominent investors has supported a new publicly traded private equity entity established by the creators of Melrose Industries.
The freshly formed entity, named Rosebank Industries and domiciled in Jersey, is set to debut on London’s AIM market this Thursday. Executives anticipate a transition to the main market upon acquiring companies, with aspirations of eventually entering the prestigious FTSE 100 index.
Rosebank disclosed its admission document on Tuesday, announcing a successful fundraising of £50 million at 250p per ordinary share, with the Rosebank leadership contributing 10% of the total amount.
The impending listing is poised to provide a significant boost to the London Stock Exchange, which has faced challenges in attracting notable listings recently.
Led by six former Melrose executives, Rosebank intends to seek additional capital from investors once it identifies its initial acquisition target. The company’s focus will be on acquiring industrial and manufacturing firms in the UK, US, or Europe valued up to $3 billion (£2.3 billion).
Currently evaluating 10 to 15 potential targets, Rosebank aims to double investors’ equity value over a three to five-year period.
Simon Peckham, former Melrose CEO and now Rosebank’s chief executive, highlighted the company’s strategy to replicate Melrose’s successful “buy, improve, sell” approach, exemplified by its notable acquisition of the FTSE 100 engineering group GKN in 2018 for £8.1 billion through a hostile takeover.
Earlier this year, Melrose executives received a substantial portion of a £180 million bonus pool, adding to significant remunerations received by its leadership since the company’s establishment in 2003.
Rosebank’s management compensation structure mirrors Melrose’s, featuring a three-year incentive plan that grants them 10% of the increase in Rosebank’s value once investor returns exceed an eight percent annual rate.
Rosebank’s board will be chaired by Justin Dowley, outgoing chair of Melrose, with Christopher Miller, one of Melrose’s co-founders, serving as a non-executive director. Another co-founder, David Roper, will invest in Rosebank without joining its management team.
Backed by major investors such as BlackRock, Norges, and GIC, Rosebank has garnered significant support in its debut. Asset managers Artemis and Aviva have confirmed their participation, although BlackRock, Norges, and GIC declined to comment, according to the Financial Times.
Read more:
Melrose founders plan rare London fund listing
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By Benjamin
A group of prominent investors has supported a new publicly traded private equity entity established by the creators of Melrose Industries.
The freshly formed entity, named Rosebank Industries and domiciled in Jersey, is set to debut on London’s AIM market this Thursday. Executives anticipate a transition to the main market upon acquiring companies, with aspirations of eventually entering the prestigious FTSE 100 index.
Rosebank disclosed its admission document on Tuesday, announcing a successful fundraising of £50 million at 250p per ordinary share, with the Rosebank leadership contributing 10% of the total amount.
The impending listing is poised to provide a significant boost to the London Stock Exchange, which has faced challenges in attracting notable listings recently.
Led by six former Melrose executives, Rosebank intends to seek additional capital from investors once it identifies its initial acquisition target. The company’s focus will be on acquiring industrial and manufacturing firms in the UK, US, or Europe valued up to $3 billion (£2.3 billion).
Currently evaluating 10 to 15 potential targets, Rosebank aims to double investors’ equity value over a three to five-year period.
Simon Peckham, former Melrose CEO and now Rosebank’s chief executive, highlighted the company’s strategy to replicate Melrose’s successful “buy, improve, sell” approach, exemplified by its notable acquisition of the FTSE 100 engineering group GKN in 2018 for £8.1 billion through a hostile takeover.
Earlier this year, Melrose executives received a substantial portion of a £180 million bonus pool, adding to significant remunerations received by its leadership since the company’s establishment in 2003.
Rosebank’s management compensation structure mirrors Melrose’s, featuring a three-year incentive plan that grants them 10% of the increase in Rosebank’s value once investor returns exceed an eight percent annual rate.
Rosebank’s board will be chaired by Justin Dowley, outgoing chair of Melrose, with Christopher Miller, one of Melrose’s co-founders, serving as a non-executive director. Another co-founder, David Roper, will invest in Rosebank without joining its management team.
Backed by major investors such as BlackRock, Norges, and GIC, Rosebank has garnered significant support in its debut. Asset managers Artemis and Aviva have confirmed their participation, although BlackRock, Norges, and GIC declined to comment, according to the Financial Times.
Read more:
Melrose founders plan rare London fund listing