The London-listed investment trust said it would pursue a “managed realisation” of its assets, following a review which cited limited scale, and inability to raise follow-on capital, and persistently wide share price discounts to NAV.
To support the wind-down, HydrogenOne has appointed Redwheel Asset Management LLP as its new investment adviser and Global Fund Management Services (GFM) as the Alternative Investment Fund Manager. Redwheel replaces HydrogenOne Capital LLP, the trust’s founding adviser, while GFM takes over from Fundrock Partners.
The board said the appointments were made to reduce costs and improve shareholder outcomes during the process.
Under the revised structure, Redwheel will receive a £1m ($1.3m) fixed annual advisory fee, plus a tiered incentive fee based on proceeds from asset disposals and a 5% performance fee if disposals exceed NAV.
As of June 30, HydrogenOne had approximately £1.6m ($2.1m) in cash remaining, down from £2.3m ($3m) at the end of March. Its next NAV update has been delayed until September to allow for an independent valuation of the portfolio.
Shareholder approval will be required before the wind-down formally begins.
HydrogenOne launched in 2021 with the goals of delivering capital growth from hydrogen investments. By 2022, its portfolio of assets exceeded £500m ($662m).
It includes companies such as Sunfire, HiiRoc, Elcogen, Bramble Energy, Cranfield Aerospace Solutions, and Strohm
Newsletters
H2 View knows just how much hydrogen news there is to keep on top of. Keep up to date on the latest developments across the industry with our daily newsletter that will give you the top five stories of the day, straight to your inbox.
Don’t forget we also have our weekly newsletter which includes a round-up of the past seven days’ hydrogen highlights, including not only news but also interviews, features and analysis.
Sign up for our newsletters here.