Record, a London-based specialist currency investment manager and provider of currency hedging services for institutional clients, has announced plans for an initial public offering of its
Record, a London-based specialist currency investment manager and provider of currency hedging services for institutional clients, has announced plans for an initial public offering of its ordinary shares, which are to be listed on the London Stock Exchange’s main market.
Founded in 1983 by Neil Record, the firm’s principal shareholder and executive chairman, Record has established a leading position as a currency asset manager, notably by managing currency for absolute return, a new asset class which company expects to continue to grow in popularity with institutional investors, including defined benefit pension schemes, in the UK and overseas.
The company is currently named N.P. Record Limited but will be renamed Record plc prior to the offer and listing, which will see existing shareholders sell shares to institutional investors in the UK and other countries outside the US. JPMorgan Cazenove has been appointed sponsor to the company and sole bookrunner and broker for the offer.
The group has three principal product lines. The currency for absolute return business involves Record entering into currency contracts for clients with the objective of generating positive returns.
It also offers active hedging, where Record seeks to eliminate the impact of currency movements on elements of clients’ investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain.
In its passive hedging business, Record seeks to eliminate fully the economic impact of currency movements on elements of clients’ investment portfolios that are denominated in foreign currencies.
Record managed USD54.7bn in asset equivalents at the end of September, comprising USD28.5bn in absolute return strategies, USD4.2bn in active hedging and USD18.6bn in passive hedging. Record also managed USD3.4bn of client cash and futures positions held by clients’ custodians and/or banks to support currency management activity.
The company says that going public will allow existing employees to realise value from their shareholdings and enable new employees to become shareholders in the business, as well as enhancing Record’s profile and status with existing and potential clients.
For its most recent financial year, which ended on March 31, Record had revenues of GBP35.2m and an operating profit of GBP19.4m. For the six months to the end of September, the company, the company had revenues of GBP42.6m and an operating profit of GBP26.2m.
‘We have a 24 year track record as a specialist currency investment manager with a well-established, high-quality, dedicated team,’ says Neil Record. ‘In recent years Record has been at the forefront of developing currency for absolute return as an asset class, which continues to offer many attractive opportunities to grow the business among institutional investors in the UK and internationally. The IPO will help us further develop our business, continue to attract new talent and build our profile – maintaining the momentum we have created.’
Before founding the firm, Neil Record was an economist at the Bank of England and worked in the commodity and currency trading department at the UK subsidiary of US confectionary producer Mars. He is the author of Currency Overlay, the first book on this specialist subject.
