Management Consulting Group (LON:MMC) , the AIM listed umbrella group that runs a collection of consulting and professional services firms, has raised £25m in a placing and open offer. The move saw the introduction of private equity firm BlueGem as an investor and was backed by MCG’s largest shareholder Gartmore and its own management. Shares in the group fell by nearly 4% to 24.5p in morning trading.

MCG said the new fundraising was tied to plans to refocus its strategy, strengthen its balance sheet and give it extra headroom within its current banking facilities. BlueGem, led by Marco Capello, has invested £17.0m at 22p per and secured two non-exec positions on the MCG board. In turn, the company completed a further £8.0m placing at the same price.

During 2009, MCG’s core markets experienced a significant decline in the demand for the management consulting and professional services, as existing and target clients tried to reduce expenditure. In order to capitalise on improving economic conditions the company’s board launched a review of its options earlier this year and appointed new chief executive Nick Stagg, who will take up his role on July 1, 2010. As part of the new strategy, MCG is set to focus on organic growth of its existing businesses, improved financial discipline and the delivery of operational improvements and efficiencies at head office and divisional level.

Alan Barber, MCG's executive chairman, said: “With a strengthened balance sheet, refocused strategic priorities and a new CEO, MCG is entering an important new phase of its development. We are now much better placed to capture the improving organic growth opportunities as we enter more benign trading conditions. We welcome the support of our new and existing shareholders and are keenly focused on delivering improved returns to shareholders.”

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