REG - Gresham House REVCT - Amendment to Investment Advisory Agreement

Gresham House Renewable Energy VCT 1Announcement

25/06/2024 10:30

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RNS Number : 7828T  Gresham House Renewable EnergyVCT1  25 June 2024

25 June 2024

 

GRESHAM HOUSE RENEWABLE ENERGY VCT 1 PLC

(the "Company")

 

Amendment to Investment Advisory Agreement: smaller related party transaction

The Board of Gresham House Renewable Energy VCT 1 PLC (the "Company")
announces a variation (the "Variation") to the terms of the investment
advisory agreement dated 7 November 2017 (the "IAA") entered into between the
Company, Gresham House Renewable Energy VCT 2 PLC and the Company's Investment
Manager, Gresham House Asset Management Limited (the "Manager"), pursuant to
which the Manager provides investment advisory services to the Company in
exchange for an annual advisory fee.

 

The annual advisory fee is a net asset value ("NAV") based fee and is subject
to a clawback depending on whether the Company's annual running costs exceed
3% of NAV (the "Cap"). Following the adoption of a new investment policy on 13
July 2021, the Company's principal objective is to realise the remaining
assets in the portfolio through sales or otherwise monetisation of the assets.
Following the sale of some assets in April 2023 and subsequent dividend paid
as a result of the 13 July 2021 shareholder vote to wind-down the Company (the
"Managed Wind Down"), the Company's net assets have reduced significantly to a
level not anticipated when the IAA agreement was agreed and signed. Due to
this significant reduction in the NAV as a result of the Managed Wind Down
process, the annual running costs for the financial year ending 30 September
2024 are currently forecasted to be around 4% of NAV, which would exceed the
current 3% cap. This means that running costs, many of which are largely
fixed, now exceed the Cap and the Manager's annual advisory fee is therefore
subject to a clawback (on top of an already reduced annual advisory fee due to
a lower NAV following asset sales).

 

To rectify this unintended consequence of the new investment policy, the
Variation seeks to minimise the effect of the clawback by raising the Cap to
5% of NAV or £625,000, whichever is the lower.

 

The Variation constitutes a smaller related party transaction within Listing
Rule 11.1.10 R.

END

 

For further information, please contact:

 Gresham House Asset Management  renewablenergy@greshamhouse.com (mailto:renewablenergy@greshamhouse.com)
 Investor Relations              Tel: 020 3875 9860

 JTC (UK) Limited                GreshamVCTs@jtcgroup.com (mailto:GreshamVCTs@jtcgroup.com)
 Company Secretary
Tel: 020 7409 0181

LEI: 213800IVQHJXUQBAAC06

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