Can’t Raise Billions in London That’s Rubbish Says Top Investor

Simon Peckham, a prominent figure in the UK investment landscape, has dismissed claims that companies are unable to raise vast sums on the London market. His assertion stands in stark contrast to the narrative that suggests the City of London has lost its prowess in attracting investors. Peckham, the former chief executive of Melrose Industries, has successfully raised nearly £3 billion in the last year, including a record-breaking £1.9 billion fundraising for his new venture, Rosebank.

Peckham argues that the key to successful fundraising lies in the willingness of company boards to engage boldly with their shareholders. He claims that there are ample funds available and that the real barrier is a lack of courage among boards to seek investment for growth opportunities. He emphasises that many capable management teams and promising ideas exist and should not be held back by unfounded fears about investor willingness.

Founded in 2003 by Peckham alongside Christopher Miller and David Roper, Melrose has garnered a reputation for strategic acquisitions, most notably the £8 billion purchase of GKN in 2018. Following that acquisition, GKN was restructured, with its non-aerospace operations spun off into a separate entity called Dowlais. This decision brought significant scrutiny, however, as it resulted in the loss of numerous jobs.

After his tenure at Melrose, Peckham sought opportunities that allowed him to engage directly with the public markets, finding them more liberating than corporate environments. He noted that private equity markets are currently burdened with assets that are stagnant and in need of revitalisation. Peckham is keen on exploring these avenues further, indicating a belief that there are many undervalued opportunities available.

The driving force behind Rosebank’s recent fundraising efforts includes a significant portion sourced from US investors, aimed at acquiring two American manufacturing firms, Certified Power Solutions and MW Components. These companies, while surrounded by considerable debt, have the potential for financial rejuvenation through planned investments. Peckham and his team intend to alleviate debt burdens in order to provide necessary capital for business growth.

Peckham’s approach is straightforward, focusing on investments that yield substantial returns. With a small team of 25, many of whom previously worked at Melrose, Rosebank prioritises deal-making over administrative functions. The firm is set on pursuing sizable acquisitions, indicative of its ambition in a competitive landscape.

Peckham has made it clear that his success is not merely personal; it results from a collaborative effort with a dedicated team. This perspective underlines his belief in the importance of collective strength in realising financial objectives.