Private markets manager Searchlight Capital Partners has agreed to acquire U.K. alternatives manager Gresham House through Seed Bidco Ltd., formed from its funds, in a £469.8 million deal ($615 million), a spokeswoman confirmed.
Gresham House, which has £8 billion in assets under management, focuses on forestry, real estate, sustainable infrastructure, renewable energy, battery storage and public and private equity.
Searchlight said Monday in a regulatory statement that Gresham House has established a robust platform for future growth, and had track record of delivering strong investment returns for its clients across multiple strategies, asset classes and regions.
The firm intends to help Gresham House execute its current strategy by providing the capital necessary to realize international ambitions.
Commenting on the deal, Anthony Townsend, chairman of Gresham House, said in a joint regulatory statement Monday: "Today's offer delivers shareholders a 4x return over this period. The Gresham House Board believes that it represents a compelling opportunity in the current challenging economic environment for shareholders to realize, with certainty, Gresham House's potential for long-term future value creation."
Gresham House directors, who have been so advised by Evercore and Blackdown Partners, will be recommending unanimously that the shareholders approve the deal.
"We are confident that Searchlight will accelerate our international and domestic growth strategy and their long-term capital and global expertise will support and enhance our investment teams' ability to deliver returns to clients," Mr. Townsend added.
James Redmayne, partner at Searchlight Capital Partners U.K., said in the statement: "We are excited to invest in Gresham House and partner with Tony Dalwood and his highly talented management team. Their achievements in building Gresham House over the past eight years to its position as a leading natural capital and sustainability focused asset manager have been hugely impressive."
The transaction is expected to close later this year or in early 2024 subject to shareholder and certain regulatory approvals, according to a person familiar with the deal.