October 23, 2017 / 6:32 AM / 7 months ago

Electra says market conditions do not support new investment

Oct 23 (Reuters) - Electra Private Equity, one of Britain’s oldest private equity firms, said it will not be making any new investments for the time being due to market conditions.

“The board considers that current market conditions do not support new investment. However, should conditions change the board will consider further investment,” Electra said in a statement on Monday.

It added that it plans to pay shareholders a special dividend of 350 million pounds ($462 million).

Electra is undergoing a strategic review after separating from its investment manager, which is now known as Epiris, earlier this year.

The firm said it would now take actions to simplify its corporate and underlying partnership structures to cut costs and increase efficiency, as part of the second phase of the review.

Electra also said it would update its investment policy to reflect a focus on shareholder returns and explore options for the reclassification of its current listing.

The company, which has focused on private equity for over 25 years, said it will hold a general meeting where shareholders could vote on proposals, including dropping “Private Equity” from its name. ($1 = 0.7567 pounds) (Reporting by Noor Zainab Hussain in Bengaluru)

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