Lindsell Train, the fund house run and jointly owned by Nick Train and Mike Lindsell, has fallen in value by more than £45mn over the past year.
That’s according to the valuation placed on the company by Lindsell Train investment trust, an entity which owns 24.2 per cent of the shares in the privately owned asset management firm.
The latest results for the trust show it values this stake at £85mn, implying a valuation for the entire business of about £338mn.
This implies the company’s valuation dropped by around £45mn in 12 months.
Previous calculations carried out by FTAdviser, using the same valuation methodology as that deployed by Lindsell Train, gave a valuation to the private company of £450mn.
There are two reasons for the drop in valuation according to the board of the Lindsell Train investment trust.
The first is the net outflows of £5.3bn since June 2021, when assets peaked at £24.6bn. In March 2023, when the valuation was calculated, the assets under management were £18.6bn.
The second factor cited by the trust's board is the recent rise in UK corporation tax from 19 per cent to 25 per cent.
Succession planning
As part of the trust’s results announcement, it revealed both Train, Lindsell and the trust itself, were giving shares to Lindsell Train staff as part of long-term incentive and succession planning.
All three believe the retention of key staff members and the investor confidence of a proper succession plan will enhance the value of the business in the longer-term.
James Bullock, who is a named fund manager on the Lindsell Train Global equity fund and the recently launched US fund, is among those to have become a shareholder and likely to be among those who play a greater role in managing the funds when Lindsell and Train step away.
Bullock joined the firm as a graduate trainee.
david.thorpe@ft.com
