Interim Update on Strategic Review

Electra Private Equity PLC

Interim Update on Strategic Review

London, 26 May 2016, The Board of Electra Private Equity PLC (the "Company") today provides an interim update on the review of the Company's investment strategy and policy and its structure, which was announced on 25 January 2016 with the objective of maximising long-term shareholder value (the "Review").

The Review remains on track for completion in the Autumn and the Board has not yet reached any decisions on the optimal strategy and structure.  However, a number of interim conclusions have been reached and these will take immediate effect.

Corporate Governance

In order to strengthen its corporate governance structure, the Board has decided to establish an executive function to provide ongoing support to the Board; including the provision of administrative and analytical support in relation to the review process.  The Board has appointed the serving non-executive director Edward Bramson as unpaid interim Chief Executive Officer; a search for a Chief Financial Officer is also under way. Neither appointment will cut across the delegation to the investment manager under the MIG.

Management & Investment Guideline Agreement ("MIG")

To provide the Board with the flexibility to put in place any potential changes as an outcome of the Review without any undue delay, the Board has served notice of termination of the MIG and the related limited partnership agreement under which management of the Company's operations and investments is wholly outsourced to Electra Partners LLP ("Electra Partners").  The Board continues to explore a range of options including retaining the services of Electra Partners as investment manager under a mutually acceptable agreement.

The MIG provides for a notice period of 12 months (the "Notice Period") during which time Electra Partners continues to provide the same administrative and investment management services as at present, although there may be some constraints on the rate of new investments.

Board of Directors

The Board is pleased to announce that David Lis, former CIO at Aviva Investors, and Paul Goodson, former Chairman of Great Bear Distribution Ltd and former Managing Director of Barclays Private Equity Ltd, have agreed to join the Board as non-executive directors with immediate effect.  

Neil Johnson, Chairman of Electra Private Equity, said today "The changes announced today are designed to strengthen the corporate governance of the Company and provide the Board with the necessary support to undertake its detailed Review of strategy and structure.  The Board continues to examine its options to maximise shareholder value and will report its findings in the Autumn.  

"The decision to serve notice to Electra Partners is a pragmatic step that will allow the Board to act on any specific recommendations of the Review in a more timely way.

"I am delighted to welcome David and Paul to Electra's Board. Their wealth of experience will benefit our current review process and add substantial investment and commercial insights to the Board.  I would also like to thank Edward Bramson for taking the role of interim CEO as we build the executive team."

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For further information:

On behalf of Electra Private Equity PLC

Brunswick Group LLP                                                                                                                         020 7404 5959

Gill Ackers/Kim Fletcher                                                                                     Electra@brunswickgroup.com