Tenon to launch fund management business

Matthew Bowker, member of the TenonCap Investment Committee

Tenon Group plc has announced that it will be launching Tenon Capital Management Limited (“TenonCap”), a fund management business which intends to raise a new fund, T-Fund LP (the “T-Fund”) to invest in distressed businesses with turnaround potential and with a typical turnover of between £5m and £30m.

Tenon Group plc will be a cornerstone investor in the T-Fund, with an expected commitment of up to £1.5m. The directors of TenonCap will invest up to a further £250,000. In total, TenonCap is seeking aggregate commitments of £15m to £20m for the T-Fund.

The Tenon group is a leading adviser in the UK recovery sector with 40 directors and 320 staff across 30 offices in the country. Tenon Recovery, a business within the Tenon group, currently advises lenders and stakeholders in distressed trading companies, which TenonCap anticipates will provide investment opportunities.

The members of the TenonCap Investment Committee, Andy Raynor, Carl Jackson, Mark Lucas and Matthew Bowker, have a wide range of banking, financial intermediary and insolvency practitioner connections.

TenonCap will seek to invest in companies where it can identify routes to exit, including trade sales or secondary sales, such as management buy-outs or management buy-ins, or initial public offerings. Where it considers appropriate, TenonCap may access the resources of the wider Tenon group companies to advise on the timing and manner of disposal of T-Fund investments to maximise returns.

TenonCap will conduct detailed business reviews of target businesses prior to investment and on a periodic basis to examine areas for cost saving, growth, potential new markets, and opportunities to support and develop management teams, all of which will be combined in an overall turnaround strategy specific to that business.

The T-Fund will be marketed to persons who may receive financial promotions under applicable laws and regulations. TenonCap anticipates that the T-Fund will be made available to institutional investors and through independent financial advisers to persons for whom the T-Fund, which will not be regulated, is suitable.

Matthew Bowker, CEO of TenonCap, commented: “Having seen several economic downturns, we are greatly aware of the opportunities they can produce. We believe we are well placed to identify the best opportunities and to achieve successful turnarounds and profitable exits for our investors.”