Albemarle Private Equity is highly commended for its investment in Home Entertainment, which it made as part of its management contact for the Brown Shipley Development Fund. Shares in Home Entertainment Corporation, the UK’s second largest video rental business, rose 14 per cent on their first day of trading on AIM. The company appointed broker Teather & Greenwood shortly before September 11 but got the float away the month following that, which allowed the Brown Shipley Development Fund to sell its 31.46 per cent stake in the company, reaping a GBP14.2 million profit on an initial investment of GBP2.2 million. (A total of 38 per cent of the company’s shares were floated.)
The shares exceeded the 170 pence offer price, rising to a high of 193.5 pence and giving Home Entertainment a market capitalisation of GBP34.09 million.
The Brown Shipley Development Capital Fund first invested in Home Entertainment in 1988 and made subsequent commitments in 1989 and 1990. The investment is the last to be realised from the 1987 fund.