In an update for the financial year to 31 December 2021, Gresham House (GHE ) reported ‘exceptionally strong’ profit and assets under management (“AUM”) growth for the period. 

The specialist alternative asset manager said AUM had increased by 65% to £6.5 billion, up from £4.0 billion a year prior while full year adjusted operating profits are expected to be in excess of £19.75 million, excluding performance fees, up from £12.1 million a year prior. 

Gresham attributed AUM growth to strong fundraising, targeted acquisitions and performance. The firm said this was particularly noted in the independent valuations of Forestry assets last month alongside fund performance and inflows into new fund launches and existing funds. 

It added that the rise in profit since its last trading update on 9 December 2021 is reflective of private asset deployment and transaction fees earned ahead of management expectations.

Gresham said strong fund performance across the Group is ‘pleasing,’ with many equity funds in top IA quartiles. Consequently, the Group said it has also received net performance fees of £1.7 million from the equity funds for the year to 31 December 2021 compared to nil in 2020.

Shares in Gresham House ticked up by 2.98% to 865p this morning following the news.

The Group said it has made ‘excellent progress’ against its five-year goals, as set out in its GH25 strategic plan, and in November it revised its GH25 AUM target upwards by 33% to £8 billion AUM, whilst maintaining the targets of 40% EBITDA margin and 15% ROIC by 2025.

Gresham added that a recent 2021 employee engagement survey has demonstrated high levels of satisfaction and commitment, including a 96% advocacy rate amongst staff. 

Commenting, Tony Dalwood, Chief Executive Officer of Gresham House, stated: “The performance of Gresham House over the course of the year demonstrates the success of the Group’s strategy and business model. It is a testament to the capability and energy of those working within Gresham House as we aim to satisfy growing client demand for our sustainable and specialist asset classes and capture the significant opportunity ahead of us.”

Follow News & Updates from Gresham House: