Electra, a London Stock Exchange listed investment trust focused on private equity investments, is facing off against a shareholder, Sherborne Investor, led by veteran activist Edward Bramson. Sherborne is seeking two out of eight board seats while Electra indicates such representation at the board level would allow a fraction of investors to essentially play a block-holder role in the governance of the company.
Sherborne controls approximately 30% of the company and enjoys support from Soros FM, Aviva and Invesco, all fellow shareholders. The company says Sherborne is an activist and simply wants to cut costs, while Sherborne says Electra's board is not truly independent, implying a failure to monitor management. Since 2010, Electra's returns have tracked FTSE 250 index returns and outperformed the Morningstar PE Index. More information on this developing situation is found at http://www.theguardian.com/business/nils-pratley-on-finance/2015/nov/05/electra-election-flimsy-platform-private-equity.
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