Thu, Apr 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Emco launches alternative fund investing in late night licensed venues

Monday, November 26, 2012
Opalesque Industry Update - EMCO Capital Advisers is launching a Cayman registered alternative investment fund focused on investment in late night licensed venues in the UK. The Fund is aiming for exceptional returns to investors over a rolling two-year cycle.

EMCO Alternative Property Fund has been structured to achieve principally capital growth and some additional return from income via a portfolio of freehold entertainment venues in three ways:

1) Capital growth arising from the relicensing of premises whose license has been lost or withdrawn

2) Income arising from the granting of operating leases to EMCO Leisure Ltd (the Venue Operator) which will operate the venues

3) Capital growth arising from attaining ‘change of use’ permissions on premises, for example planning permission for conversion to residential property. This third element also provides investors with a key risk management function in the event that having an entertainment venue is not attractive to a potential purchaser

4) Unless there are exceptional circumstances, each venue within the portfolio will be sold, either by private contract, or via trade sale or other means towards the end of the a two-year period

The Fund’s trading advisers are concentrating on building the investment portfolio from premises usually outside London which, after substantial due diligence and financial modelling are found to share the following characteristics:

  • Freehold
  • Frequently distressed – for example in want of refurbishment, running at a loss, having no operating license – and thus buyable at a substantial discount to book value
  • Likely to benefit from significant and immediate capital value increase on granting of an operating license
  • Likely to benefit from significant and immediate capital value increase on granting of change of use permission
  • Capable of generating useful income as a venue based on Adviser’s proprietary analytical model and considerable experience of running entertainment venues
  • Susceptible to longer-term capital value increase arising from the operation of a successful and popular entertainment venue

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob