Eight Capital Partners Plc
("Eight Capital" or the "Company")
First investment in the financial services sector and second half 2018 update
Eight Capital is pleased to announce its first investment in the financial services sector and to provide an update for the remainder of 2018.
Investment in financial services
Eight Capital has made an investment in an Italian financial services company, Finance Partners Group S.p.A. ("FP Group"), through the acquisition of €111,100 worth of listed 8% yielding FP Group corporate bonds, expiring in 2020.
The investment will generate a strong income on capital invested and is part of a growing strategic relationship with FP Group. This investment in an active, growing, regulated Italian financial services business fits well strategically with other UK and European based financial services investments that the Company has under consideration.
FP Group's regulated fund manager has permissions to operate a range of funds including real estate funds, hedge funds and other alternative investment funds. The Group's advisory arm is well placed to benefit from the growing listed capital markets sector in Italy (in particular AIM Italia) and has clients including Unicredit and BNL Banks, Tamoil, Diesel and Zegna fashion brands.
FP Group has granted a pledge over 20% of the shares of its advisory arm, Financial Innovations Team SPA,as additional security for the corporate bonds.
Value Added Fund, a significant shareholder in Eight Capital, is a sub-fund of Cosmos SICAV Plc ("Cosmos"). Cosmos is an umbrella collective investment scheme that administers a number of sub-funds, each with its own investors, board and management. Open Capital Fund, also a sub-fund of Cosmos, historically owned warrants in FP Group with a right to buy 150,000 shares in that company; these warrants were sold in March 2018.
Update for second half 2018
Eight Capital will consider strategic capital raises in the coming period should the Board feel it prudent to have further funds available to implement its investment strategy. This could be through the issue of equity or through other more accretive instruments. We are encouraged by the number of investors that have expressed an interest in the Company's strategy.
There are a number of potential investments in the financial services and technology sectors under consideration. These include early and growth stage fund management and advisory businesses in the UK and Continental Europe. Such opportunities are also being targeted for completion in 2018.
Dominic White, Chairman commented "We're delighted to be moving Eight Capital forward with an updated strategy and first strategic investment. The team is working on a strong pipeline of potential opportunities in the finance, technology and other sectors, generally with a consolidation theme, to deliver operational efficiencies and cross-selling activity. This has attracted interest from a number of potential sources of capital. We also look forward to offering further investment opportunities to our current shareholders who continue to be part of the Company's journey."
The Directors of the Company accept responsibility for the content of this announcement.
For further information, please contact:
Eight Capital Partners Plc:
+44 (0) 20 7469 0930
NEX Exchange Growth Market Corporate Adviser:
Peterhouse Capital Limited
Guy Miller and Fungai Ndoro
+44 (0)20 7469 0930
+44 (0)207 812 0645