Gresham House Renewable EnergyVCT1 Amendment to Investment Advisory Agreement
June 25 2024 - 5:25AM
RNS Regulatory News
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
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LEI: 213800IVQHJXUQBAAC06
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