Better capital to raise £65.8 million to buy distressed business' assets.

Better Capital, the turnaround private equity group run by Jon Moulton, will raise £65.8 million through a new share placing, just months after it raised £142.2 million from its floatation.

The company will step up from Aim to be listed on the London Stock Exchange. Moulton – who had aimed to generate £200m from the flotation – said he was looking at several potential turnround deals with the new money in mind.

These include deals in the high-end fashion retail and construction sectors. The company has already been behind the high-profile buying of Reader’s Digest out of administration, and also spent £20 million on buying Gardner.

Moulton, who formed Better Capital after his shock departure as head of Alchemy last year, said the seeking of more money had been prompted by an increasing number of distressed assets being created by the economic downturn.

"At the moment there is quite a bit of industry concentration, with several things appearing in the construction-related sectors, like building materials and plant hire," he said.

"The money raised in the listing will be spent on deals – hopefully very good ones. We are reasonably comfortable with the deals we have made so far.”

Reaction to the news saw shares in Better Capital immediately rise by 2.01p yesterday to 111.5p, having floated with a value 100p. The company will issue 64.4 million new shares at 105p each.

Share this article

Latest Businesses for Sale

View more businesses for sale