REG - Gresham House Energy - Reduction in Fund Management Fee

Gresham House Energy Storage FundAnnouncement

03/02/2025 07:15

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RNS Number : 6135V  Gresham House Energy Storage Fund  03 February 2025

3 February 2025

 

Gresham House Energy Storage Fund PLC

("GRID" or the "Company")

 

Change to Alternative Investment Fund Management ("AIFM") Agreement -
Reduction in Fund Management Fee

 

 

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund
investing in utility-scale battery energy storage systems (BESS), has agreed
substantial reductions in the annual fund management fees incurred by the
Company.

 

Changes to annual fund management fees

 

Under the old AIFM Agreement, the annual fund management fee ("AIFM fee") was
calculated quarterly as a percentage of the Net Asset Value ("NAV") at the
beginning of each quarter, with the annual percentage charged at 1.0% up to
£250mn, 0.9% above £250mn to £500mn and 0.8% above £500mn.

 

From 1 February 2025, the Company and Gresham House Asset Management Limited
("the Manager") have agreed that these percentage rates, rather than being
applied to NAV alone, will be applied to an equal weighting of (i) the average
of the closing daily market capitalisation during each quarter and (ii) the
NAV at the beginning of each quarter 1 .

 

Impact on the Company and further details

 

Assuming a share price of 41.05p 2  and the current NAV per share of 109.1p
throughout the whole of 2025, these new arrangements would result in assumed
total annualised AIFM fee for 2025 of c.£4.1mn. If the current NAV of 109.1p
were to continue throughout 2025, the AIFM fee based solely on NAV would be
c.£5.7mn.

 

This new arrangement represents potential annualised saving of c.£1.6mn (28%)
versus an AIFM fee based solely on NAV.

 

John Leggate CBE, Chair of Gresham House Energy Storage Fund plc, said:

"We are pleased that we have been able to negotiate new fee arrangements which
better reflect the current market conditions and investor sentiment. The new
arrangements further build on the significant alignment between the Manager
and shareholders by virtue of their existing substantial share ownership 3 .
The next three years will involve a very intense workload for the Manager as
the Company delivers on its three-year plan and the Board will keep the fee
arrangements under review on an annual basis."

 

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc &
Managing Director of Gresham House New Energy, said:

"We recognise the past 18 months have been tough for all shareholders.  We
are pleased to have concluded these revised fee arrangements which further
motivate the Manager to deliver for shareholders. Our focus is squarely on
delivering against the three-year plan unveiled during the Capital Markets Day
last November."

For further information, please contact:

 

 Gresham House New Energy                +44 (0)20 3837 6270

 Ben Guest

 James Bustin

 Harry Hutchinson

 Jefferies International Limited         +44 (0)20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 Harry Randall

 KL Communications                       gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman                          +44 (0)20 3882 6644

 Charlotte Francis

 Effie Aye-Maung-Hider

                                         GHEnergyStorageCoSec@jtcgroup.com (mailto:GHEnergyStorageCoSec@jtcgroup.com)

                                       +44 (0)20 7409 0181
 JTC (UK) Limited as Company Secretary

 Christopher Gibbons

 

LEI: 213800MSJXKH25C23D82

About the Company and the Manager:

Gresham House Energy Storage Fund plc seeks to provide investors with an
attractive and sustainable dividend over the long term by investing in a
diversified portfolio of utility-scale battery energy storage systems (known
as BESS) located in Great Britain and internationally. In addition, the
Company seeks to provide investors with the prospect of capital growth through
the re-investment of net cash generated in excess of the target dividend in
accordance with the Company's investment policy.

 

The Company targets an unlevered Net Asset Value total return of 8% per annum
and a levered Net Asset Value total return of 15% per annum, in each case
calculated net of the Company's costs and expenses.

 

Gresham House Asset Management is the FCA authorised operating business of
Gresham House Ltd, a specialist alternative asset manager. Gresham House is
committed to operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.

 

http://www.greshamhouse.com/

 

 

Definition of utility-scale battery energy storage systems (BESS)

 

Utility-scale battery energy storage systems (BESS) are the enabling
infrastructure that will support the continued growth of renewable energy
sources such as wind and solar, essential to the UK's stated target to reduce
carbon emissions. They store excess energy generated by renewable energy
sources and then release that stored energy back into the grid during peak
hours when there is increased demand.

 

 

 1  The Company and the AIFM have reflected these arrangements in the amended
AIFM Agreement.  The amended AIFM Agreement includes provisions to ensure
that, if the market capitalisation exceeds NAV, the AIFM fees payable under
the new Agreement will not exceed the AIFM fees which would be paid under the
previous AIFM Agreement.

 2  The closing share price on 31 January 2025.

 3  The Manager, funds under its management and certain employees own 12.2% of
shares as at 30 January 2025.

 

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