BRAVEHEART yesterday hailed its transformation from investor to fund manager and said it was looking to gain work with more government-backed funds.
The Perth-based group, which made its name as an “angel investor” specialising in Scottish technology start-ups and university spin-off companies, is looking forward to a surge in fee income after taking charge of two government-backed funds worth nearly £100 million earlier this year.
As part of a strategy to take on more management work, Braveheart led a consortium appointed to manage the £50m Growth Loan Fund in Northern Ireland and bought the firm in charge of the £48m Finance Yorkshire Equity Fund.
Although both moves came too late to affect the figures, the firm saw management and consultancy fee income jump 37 per cent to £1.3m in the last financial year. Funds under management jumped from £12m to £110m.
However it still made a loss before tax of £1.5m compared to an £862,000 loss the year before.
Chief executive Geoffrey Thomson said results for the current year would be “substantially different”.
“This year has seen a major transformation of our business and we are now an SME focussed fund and services management provider,” he said. “The next few years will see us consolidate our market position as a leading manager of equity and equity linked products to the SME market.”
He said the firm was seeking to gain more fund management work, both organically and by acquisition, and that it had now stopped adding to its own portfolio of investments. The portfolio made a small paper loss last year, in line with expectations.
Thomson said the current economic climate meant valuations of companies were being written down. He said that when Braveheart eventually exits its investments, it may consider starting a new fund.
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Monday 20 May 2013
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