The failure of Silicon Valley Bank (SVB) has been widely reported over the weekend. There is no material impact on Gresham House plc, its fund management business, or funds managed or advised by the group.
There is minimal exposure to SVB in the group’s VCT fund management arm, which advises and manages the Baronsmead and Mobeus VCTs.
The key points are as follows:
- Gresham House plc
At a corporate Gresham House plc level, there is no direct exposure to SVB and, as you would expect, our cash management procedures are robust. At a group level, our UK entities’ cash is held with Santander UK plc, NatWest Group plc and Lloyds Bank plc with our Irish entities’ cash held at Allied Irish Banks plc.
- Fund management business (excl. VCT funds, see below)
There is no material exposure to SVB.
- VCT fund management business
The VCT funds’ cash balances are well spread across deposits with a range of credible counterparties with none directly with SVB.
- VCT portfolio companies
At a VCT portfolio company level, there is minimal practical exposure for the VCTs. There are five businesses with significant SVB deposits, all of which we understand are protected. Gresham House sees no reason to impair the valuation of these assets as a result of the failure of SVB. Together, these businesses accounted for just £13.9mn of NAV at the end of February 2023 in the context of aggregate Baronsmead and Mobeus VCTs NAV of over £780mn (£13.9mn is c.1.7% of the VCTs’ NAV).
Overall, therefore, we do not consider that the failure of SVB has a material impact on Gresham House plc or funds managed or advised by its group.
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