Gresham House Energy Storage (GRID) says that it has agreed substantial reductions in the annual fund management fees that it pays. Under the old AIFM Agreement, the annual fund management fee (AIFM fee) was calculated quarterly as a percentage of the Net Asset Value (“NAV”) at the beginning of each quarter, with the annual percentage charged at 1.0% up to £250mn, 0.9% above £250mn to £500mn and 0.8% above £500mn. However, from 1 February 2025, GRID and its manager (Gresham House Asset Management Limited) have agreed that these percentage rates, rather than being applied to NAV alone, will be applied to an equal weighting of (i) the average of the closing daily market capitalisation during each quarter and (ii) the NAV at the beginning of each quarter.

Impact of the management fee change

GRID says that, assuming a share price of 41.05p and the current NAV per share of 109.1p throughout the whole of 2025, these new arrangements would result in an assumed total annualised AIFM fee for 2025 of around £4.1m. If the current NAV of 109.1p were to continue throughout 2025, the AIFM fee based solely on NAV would be around £5.7m. It adds that this new arrangement represents potential annualised saving of around £1.6m (28%) versus an AIFM fee based solely on NAV.

Comments from John Leggate CBE, GRID’s chair

“We are pleased that we have been able to negotiate new fee arrangements which better reflect the current market conditions and investor sentiment. The new arrangements further build on the significant alignment between the Manager and shareholders by virtue of their existing substantial share ownership^[3].  The next three years will involve a very intense workload for the Manager as the Company delivers on its three-year plan and the Board will keep the fee arrangements under review on an annual basis.”

Comments from Ben Guest, GRID’s manager

“We recognise the past 18 months have been tough for all shareholders.  We are pleased to have concluded these revised fee arrangements which further motivate the Manager to deliver for shareholders. Our focus is squarely on delivering against the three-year plan unveiled during the Capital Markets Day last November.”