Listed IT investment and advisory firm Interregnum is battling on with fund raising for its most recent offering. The fund raising was announced in summer 2000 with a target of GBP75 million and has yet to see a final close.
The firm reported disappointing year-end results, posting a decrease of 12.5 per cent to GBP1.33 million for total revenues. The difficulties of generating growth or attracting further capital have also led to the forced sale or liquidation of some of the group’s holdings, said chairman Ken Olisa. This has led to a write-off of GBP9.7 million.
The firm has also reduced its headcount from 29 last year to 21 at the beginning of the new financial year. The rede-ployment of staff previously engaged in investment activity means the firm now has more resources directed at fee-earning activity. The firm has also further reduced the compensation levels of all senior members of staff.Interregnum floated on AIM
in March 2000, raising GBP20 million pre-expenses.
Ken Olisa commented on the results: “At IPO it was our intention to invest the bulk of the proceeds raised, while simultaneously raising a second fund targeted at GBP75 million. We have succeeded in the first endeavour, but unfortunately the prevailing market conditions over the last 20 months have so far frustrated our efforts to raise Fund II, as potential investors have shied away from the venture capital asset class.”
Interregnum is committing GBP10.4 million to the fund. The firm will continue with fund raising activity, but will rebalance its business model to ensure profitability from its core advisory activities with profits coming from disposals of portfolio companies and any management fees earned once Fund II is raised.