Mark Kleinman: Hambro Perks, Ray Winstone’s side hustle and IPGL shake-up
Sky News’ Mark Kleinman is the man the City reads – and in his fortnightly column for Morning Wire, he shares his insight and analysis.
Hambro Perks’ called-off merger spells bad news for the City
November 23, 2021 was a landmark day for the London stock market: the unveiling of the first special purpose acquisition company (SPAC) to launch a City float. The bigger picture? It might begin clawing back some of the vast swathes of ground lost to New York during the boom for blank cheque vehicles.
Hambro Perks Acquisition Company, which raised nearly £150m from a swathe of blue-chip investors, was given 15 months to find a merger target – and last month it looked as if it had secured its prize: a combination with Istesso, a developer of drugs designed to treat chronic diseases such as arthritis and multiple sclerosis.
At a time when the UK public markets are crying out for more innovation-focused companies, this looked like a compelling addition to the ranks of London-listed biotech businesses. Moreover, it would have offered a shot in the arm to Istesso’s majority shareholder, IP Group, the intellectual property commercialisation-focused incubator.
One banking source said the transaction would have valued Istesso at more than $350m – but within 48 hours of the negotiations being publicly disclosed, both IP Group and the SPAC issued statements to say that they had been terminated.
This should be of concern to stakeholders across the City: those involved in the Capital Markets Industry Taskforce, the body chaired by London Stock Exchange CEO Julia Hoggett, institutional investors and Lord Hill, the Treasury non-executive director who oversaw the 2021 review of the UK listings regime.
Dominic Perks, founder of the eponymous venture investor and chief executive of the SPAC it spawned, said at the time of its intention to float that it had chosen London as its listing venue “because it’s the technology capital of Europe”.
“The number of unicorns in the UK and Europe has grown significantly over recent years as we have seen a migration of talent and capital to private growth companies,” he added. “Investors want to back differentiated, scalable businesses with great leadership, and those are exactly the characteristics we’ll be seeking in our target.”
Perks’ optimism, who declined to comment on the SPAC’s plans ahead of its deadline to secure a deal, may, sadly, turn out to have been misplaced.
Winstone returns to the markets to head up his sports sideline
Hollywood don’t always make you a lot of money” – or so the actor Ray Winstone once said. So the star of Scum and The Departed has built a tidy side-income in the Byzantine world of sports management.
Integral Management, the consultancy founded by Winstone and Gary Pettit, the former UK chief executive of ED&F Man Capital Markets, is returning to the financial markets with its latest hire.
I understand that Steve Ashley, a City veteran who is president of Laser Digital, Nomura’s cryptocurrency assets venture, is joining Integral as chairman.
Working with athletes in sports including football, golf, superbikes racing and tennis, Integral’s appointment of Ashley suggests its board is hatching plans for a more ambitious expansion.
Could a float one day be on the cards? Winstone would certainly make for one of the more entertaining presences at the often-dry affairs which pass as plc annual shareholder meetings.
IPGL revamps its top brass after robust results
It’s all change at the top of one of the UK’s most prominent family offices. IPGL, the investment vehicle of Lord Spencer, has replaced its chief executive, with Sam Wren stepping down as chief executive after nearly four years.
She is being replaced by Ion Bogdaneris, an experienced private office executive who has previously worked with one of Canada’s wealthiest families.
Disclosed in accounts filed at Companies House this week, Bogdaneris took up the role some weeks ago, according to people close to Lord Spencer.
At IPGL, Bogdaneris will assume oversight of a portfolio which now includes 50 investments, including stakes in Klarna, the buy now pay later platform, the Chapel Down vineyard and the Tote and Elvie, the women’s health app.
The former ICAP billionaire expressed satisfaction with its performance last year, citing its “well-positioned portfolio” that was able to withstand volatility in public markets exacerbated by the war in Ukraine”.
Mohamed Mansour, the new Conservative party treasurer, will be relieved at IPGL’s resilient results. The accounts also disclosed that the family office donated nearly £55,000 to Tory coffers, although this was sharply down on the previous year’s contribution of £170,000. Bogdaneris will have a role to play in ensuring Sunak’s election machine is in decent shape in 18 months’ time.