Re: Gresham House
Posted: July 19th, 2023, 8:42 pm
Karellan wrote:Focussing on the problem I hope that the new owners are not going to leverage on my lifestyle. I would have thought that if they squeezed the pips out of the business the results may not be predictable , what would that do to the customers (Me & you) ?
I agree with your concerns. A private equity owner, as Searchlight are, will want to grow profits for an exit in say 5-7 years time, or less.
They may want to follow a 'buy and build' strategy, adding more VCT houses to their present collection and then cutting costs but on the other hand they may leave VCTs untouched and concentrate on other parts of the GH business, only time will tell. We can only hope they get their VCT management right as growing the NAVs by investing in the 'right' companies gives them more revenue and should increase our VCT share prices.
I wonder how many VCT management companies are potential sellers. Some have been bought out already, e.g. Northern by Mercia, some are too big, e.g. Foresight, who does that leave?