Better Capital, the fledgling turnaround-focused investment company founded by Jon Moulton, has raised £142.4 million for its first fund to be listed on London’s junior stock exchange, AiM, tomorrow.
Better corralled investors over a period of eight weeks from the first meeting to tomorrow’s float. “Try doing that with a private fund in this market,” Moulton said in an interview.
Moulton described Better’s funding structure as “completely novel”. The listed company will act as the sole limited partner in a traditional private equity fund advised by Better. “People have floated limited partners, they have floated permanent capital vehicles; this is neither,” he said.
Moulton founded Better in October after a sensational departure from Alchemy, the private equity firm he co-founded in 1997. He announced his resignation via a letter to limited partners – widely leaked to the media – in which he openly criticised the financial services strategy being pursued by Alchemy and the abilities of the remaining management. He also called for dissolution of the firm's “Investment Plan”, which has been the main source of capital for its deal-making. The letter was signed off: “I would do it again – but better.”
Moulton played down concerns that a public listing would attract increased scrutiny and more onerous reporting procedures. “With the [EU’s Alternative Investment Fund Managers Directive] coming in, we will probably disclose less than they will in the private world,” he said.