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Nicola Horlick, one-time City Superwoman, was today forced to reveal that she is the mystery bidder for her only quoted investment fund, Bramdean Alternatives.
The revelation dashed any hopes that the fund, which has lost almost half its value since it floated less than two years ago, had attracted a heavyweight third-party bidder from the private equity or fund management world.
Horlick has not put any price on a possible takeover bid, and has not yet launched a formal offer putting any value on the fund despite having run it for nearly two years and making her bid approach three months ago.
In that time, no rival bidder has appeared despite strong suggestions other parties might be interested in doing a deal that might save Horlick's reputation. The admission also fuels the growing row between Horlick, the quoted fund and its largest shareholder property tycoon Vincent Tchenguiz.
Tchenguiz, who paid £38 million to take a 28% stake in the fund when it floated, has called a shareholder meeting for next week at which he wants to oust the entire board headed by former 3i chief executive Brian Larcombe.
Horlick is not on the board of Bramdean Alternatives nor is she a shareholder but her fund management business holds a lucrative contract to run the quoted fund's investments in hedge funds and private equity. She could be paid a break fee of up to £8 million if she lost the fund management contract. The fund lost £10 million with convicted New York fraudster Bernie Madoff last year and has consistently underperformed competitors.
At the end of April, Bramdean Alternatives had a net asset value of $178 million, down from $259 million a year ago. Horlick's fund management firm receives 1.5% annual management fee with a 10% performance fee, which unlikely to have been paid.
Today Bramdean Alternatives also admitted that Horlick made her “initial approach” six weeks before it was made public to the Stock Exchange. It said: “The initial approach was made on 17 March 2009 by Nicola Horlick. Nicola Horlick is chief executive officer of Bramdean Asset Management LLP.”
It added that Horlick had made the approach through newly formed company Petersfield Asset Management, which she owns entirely. Horlick “has been conducting due diligence”, today's statement said, which appears bizarre since she is already the manager of the quoted fund.
Bramdean Alternatives did not reveal Horlick's bid approach until 30 April when Tchenguiz's private company Elsina had already handed over his requisition for a shareholder meeting but the board had not agreed to it.
Shares in Bramdean Alternatives, which was floated at 100p in July 2007, had sunk below 40p ahead of the bid approach. On news of the mystery suitor, they soared by more than 20%. Today, they were unchanged at 56p — well below the April asset valuation of 88.14p a share. Bramdean Alternatives' board under Larcombe last month promised shareholders that if there is no takeover bid by 31 July it will look to restructure the fund and return cash to shareholders “via an orderly wind-down over time”.
Reader views (9)
jim ,london and mickey in london,your view of nicola horlick etc as parasites has merit,but why don't you concentrate your fire on the milions of public sector slime who are bleeding the taxpayers dry. maybe you are looking forward toyour god plated final salary pensions.
- Neil, london, 09/06/2009 22:12
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Capitalism is a protection racket; but legal.
- Mickyinlondon, london, 09/06/2009 15:59
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Let her buy her own company. Let her be her only client.
- Bloke, London, 09/06/2009 15:01
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reveals she is mystery bidder no wonder she is smiling all the way to an offshore bank with bags of swag. The FSA are a joke
- Ge, Kernow, 09/06/2009 14:59
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Never mind Due Diligence, what about conflict of interest? This is even more self-serving than a pre-pack agreement, by nipping in with a bid for assets you've devalued before liquidators can take a neutral look at the merits of the deal.If this is legal, what motive does any financial manager have to gain best value for investors, knowing they can scoop up the assets cheap if they drive them into the ground first? Horlick is a doctor with a sideline in undertaking.
- Mdj E10, london uk, 09/06/2009 14:25
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I wonder if she managed to do adequate due diligence on her own firm after the abysmal due diligence, or lack of it, she did on Madoff who was audited by a 'two man band' in north london!
An overrated woman still living off a 10 year old 'superwoman' tag, invest elsewhere is my advice.
- Matthew, Ware, Herts, 09/06/2009 14:24
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It is hard to take the financial services sector seriously in terms of performance related pay and accountability for failure. I was incredulous to read that the HBOS ex CEO Hornby who helped ruin my pension as a large HBOS and Lloyds shareholder has been recruited by Boots.
What message does that send to future batches of mainly incredibly arrogant, but business ignorant Harvard MBAs who will surely feel even more free to destroy businesses knowing that, even if they bring a G7 economy to its knees, as long as they are sitting on the top of the tree they will move on to potentially reap havoc elsewhere while innocent others' careers,businesses and livelihoods are destroyed.
Inadequate punishing of those who are guilty of gross incompetence at board level in the banks, which led to mass economic destruction, is an example of anglophone corporate despotism.
We are very foolish if the general public lets it all be swept under the carpet as it will then happen again with potentially even more catostrophic consequences.
- Jim, london, 09/06/2009 13:04
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How can Nicola justify her fees? She has lost money with Bernard Madoff yet will still earn a fortune. Also is it not misrepresentation to claim there is a bid when it is in fact you?
Very poor behaviour all round.
- Kimberley, London,England, 09/06/2009 12:28
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She invested £10m of her clients money with Bernie Madoff, has lost them £100m or so and will collect £8m if she loses her job. Nice work if you can get it.
- Tonyb, Melbourne, Australia, 09/06/2009 11:30
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