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Ethos Invest Secures Exciting New Mandate

Ethos Invest, Ethos Ventures Group’s asset management arm recently announced the securing of a new mandate, making the business revenue positive for the first time.

The exciting new development was unveiled to investors and partners of the Ethos Ventures group at an event to mark the flagship opening of their new offices off Finsbury Circus. The mandate to raise in excess of $100m for a successful MedTech fund will help invest in tech solutions that may have the potential to revolutionise healthcare. Ethos Invest Partner, Michael Whealon, said that this achievement was a “mark of confidence in our strongly held belief that we can achieve ethical outcomes through finance, without compromising on commercial viability.”

The deal also means that Ethos Invest is now firmly in the black, generating revenue for the firm for the first time since launching a few short months ago. It provides a stepping stone towards building out the asset management business, one that Frederik Wijsenbeek, Chief Investment Officer, hopes will, “allow us to show the market that ethical and Shariah compliant alternative asset management can provide impressive returns on investment, while providing a net-good to the world”.

It also speaks volumes of the team that is being built at Ethos, one that is packed with industry leaders, but with those that want to do things slightly differently. Whealon paid tribute to that fact when he told City AM, “We won this competitive mandate because we are an experienced team that have a track record of delivery. We chose this particular fund because of the potential benefits it could bring to society – in line with our ethos.”

Election a ‘window of opportunity’ for Better Business Act campaigners

The forthcoming election is a “window of opportunity” to rethink the role of business in society, a campaigner for changes to the Companies Act told a Barbican audience last night.

Chris Turner, campaign director of the Better Business Act, told attendees at a panel event celebrating the third Better Business Day that the Better Business Act would be a step change in the way firms interact with their stakeholders.

The Better Business Act proposes amendments to Section 172 of the Companies Act, which serves as the job description for bosses. 

The Better Business Act would empower directors to make decisions that align the “interests of people, the planet and profit”, rather than purely the latter. 

Speaking at the event, Holly Branson, Virgin’s chief purpose officer and a long-time supporter of the legal change, told the audience of founders, campaigners and business leaders that embedding purpose across her multi-billion pound business had been good for the firm’s bottom line.

“We’ve put in place a purpose filter which is at the heart of every decision we take,” she said, with only those moves that pass that filter going ahead. 

She was joined on the panel by Safia Minney, the ethical consumer and fashion campaigner, and Josephine Phillips, the founder and CEO of Sojo — the ‘Deliveroo of clothes repairs’ – which serves retailers with solutions for the easy repair of pre-owned items.

Phillips said changes to the act would be part of an important cultural shift happening across businesses which reflects the scale of the global challenges we now face. 

“As a founder you have a great luxury of having purpose at the heart of everything you do from the off,” she said. 

The vast majority of the British public back a change to company law to put people, the planet and profit on more equal footing, new research by B Lab UK — the home of the B Corp movement in the UK and the Better Business Act — has found.

Data released alongside the event shows Brits want companies’ fiduciary duty towards shareholders to change.

Some 76 per cent of the UK public believe that, more than ever before, the law needs to change to give businesses a legal responsibility to prioritise people and the planet alongside making a profit.

The Better Business Act also has strong business support and is backed by a broad and growing coalition of almost 3,000 organisations including Tony’s Chocolonely, Iceland, the Institute of Directors and Lucky Saint.

Bank Holiday getaways at risk as London Heathrow Airport border staff to strike

Britons trying to get away for the May bank holiday weekend will face disruption after border security staff at London’s Heathrow Airport called a strike from 31 May 31 until 2 June.

Over 500 Border Force workers at the West London airport’s terminals 2, 3, 4 and 5 will down tools, potentially causing massive queues.

The strike was called by members of the Public and Commercial Services (PCS) union over the imposition of a new roster system, with the union saying members will also refuse to work overtime for three weeks at the start of June.

As well as looming strike action, Heathrow has also complained that government policies such as the so-called ‘tourist tax’, have damaged its role as an economic hub.

Despite this, the largest airport in the UK confirmed it welcomed 6.7m passengers last month, bringing the total for the year so far to 25.2m.

In addition to strikes by PCS members, some 50 refuellers from the Unite union were due to walk out for 72 hours beginning on 4 May in opposition to changes in terms and conditions imposed by their employer, AFS, since January. The strike was eventually called off, giving hope that other actions might also be averted.

PCS general secretary Fran Heathcote said: “We are keen to resolve this dispute but the Home Office must first put something on the table for our members to consider.

“The Home Office has said it is ‘open to discuss’ a resolution but it only responded to our request for a meeting after we threatened further action.

“Until it comes back with changes to the roster that will benefit our members then the dispute will continue.”

The Home Office, which runs the Border Force and London Heathrow Airport has been asked for comment.

Asda: Debt-laden grocer cashes in on price matching schemes as hunt for new chief gets underway

Asda, the debt-laden grocery chain, said Aldi and Lidl price matching schemes helped revenue grow by 6.6 per cent in the first quarter of the year. 

The UK’s third largest supermarket, which is owned by the billionaire Issa brothers and TDR Capital, cut prices by an average of 17 per cent on more than 280 items to get their prices in line with German discounters. 

It comes as both Aldi and Lidl have seen their market share skyrocket amid the cost of living crisis, winning the hearts of cash strapped consumers thanks to low prices. 

After the quarter ended, Asda announced new price cuts on hundreds of products worth £70m, reducing prices by an average of 11 per cent.

The supermarket reported a total revenue of £5.3bn and said like-for-like sales increased slightly by 1.4 per cent. 

Friday’s announcement follows a report from the company that it has refinanced more than £3.0bn of debt. 

Asda currently has a net debt of £3.8bn after it took over parent company EG Group’s UK convenience store business. 

The supermarket has also recently secured an upgrade to its corporate rating from Moody’s to B1 from B2, while Fitch Ratings raised their outlook on Asda’s Long-Term IDR to positive from stable and affirmed the IDR rating at B+. 

Back in 2021, the Issa brothers, alongside TDR Capital, bought the supermarket which has over 1,000 stores across the UK from Walmart. 

In March, Mohsin Issa, one half of the billionaire family duo, confirmed he would eventually step back from the day-to-day running of the business and appoint a chief executive. 

It is understood that the recruitment process for a new boss is underway. 

Commenting on the results, Mohsin said: “Asda made good progress against its strategy in the quarter, laying the foundations for long-term success – including completing the conversion of our newly acquired sites to Asda Express, as part of our strategic expansion into the growth markets of convenience and food-to-go. 

“We did this while continuing to deliver great range, value and convenience, including investing in lower prices and the quality of our food and non-food at a time when the household budgets of our customers remain under pressure.”

On Monday,  Asda said it would develop a ten-acre Park Royal site in West London, building 1,500 homes, with a third being ‘affordable’.

If given planning approval, the new site will be a ‘town centre’ linking Old Oak and Park Royal, regenerating the area. It will feature a 60,000-square-foot Asda store and 400 car park spaces.

Premier League prize money: How much do you get for winning the title?

The majority of clubs may not have a Premier League title to win or relegation to avoid, but there are millions riding on this weekend.

Prize money can differ massively between each spot in the Premier League table, and that’s something each team will be conscious off come kick-off this Sunday.

Recent Premier League accounts and its annual report revealed what each club received in the 2022-23 season.

Each one of the 20 clubs receives £79.2m as a standard figure based on last year’s figures.

Then there are monies that are granted for TV appearance figures and facilities, then merit payments for finishing positions.

For comparison, Manchester City’s £176.2m is equivalent to more than the second highest transfer fee in the game – Kylian Mbappe’s move from Monaco to Paris Saint-Germain.

The figure for the Etihad team is 176 per cent the figure of the biggest English top flight transfer – Jack Grealish from Aston Villa to City.

2022-23 Premier League figures

1st – Manchester City – £176.2m

2nd – Arsenal – £172.2m

3rd – Manchester United – £168.3m

4th – Newcastle United – £164.3m

5th – Liverpool – £162.9m

6th – Brighton – £149.7m

7th – Aston Villa – £148.3m

8th – Tottenham – £151.9m

9th – Brentford – £138.7m

10th – Fulham – £138.1m

11th – Crystal Palace – £133.3m

12th – Chelsea – £137.7m

13th – Wolves – £124.6m

14th – West Ham – £129m

15th – Bournemouth – £117.5m

16th – Nottingham Forest – £118.6m

17th – Everton – £120.5m

18th – Leicester – £114m

19th – Leeds – £111.7m

20th – Southampton – £103.6m

The 2023-24 Premier League figures aren’t expected to be too different, though finishing position and facility payments may alter the numbers.

Magic Circle Linklaters ups lawyer starting salary to £150,000

Magic Circle law firm Linklaters has raised its newly qualified (NQ) salary to match its fellow competitor Freshfields as the junior pay war battles on.

The law firm has upped its salary for its junior lawyers from £125,000 to £150,000 annual base pay, effective from 1 May .

Commenting on the move, Paul Lewis, Linklaters managing partner said: “We are committed to rewarding our people competitively in our market. Our salary changes reflect this and enable us to attract and retain exceptional lawyers to provide the highest quality service to our clients.”

This move comes after fellow magic circle firm Freshfields increased its NQ salaries to £150,000 earlier this month. That move was in the same week as legacy magic circle firm Allen & Overy (A&O) officially merged with US firm Shearman & Sterling to formally make A&O Shearman.

This now leaves the other magic circle firms, Slaughter and May and Clifford Chance, lagging behind on £125,000. Even A&O Shearman, now one of the largest law firms in the world, has yet to move up from £125,000.

The elite English firms are still lagging behind the US law firms in the City. Last week, it was revealed that Emanuel Urquhart & Sullivan has hiked the salaries of its NQ London lawyers to £180,000.

Quinn joined fellow US firm Gibson Dunn, which pays its London NQ £180,000 a year.

Speaking to City A.M. earlier this week, Christopher Clark, director at Definitum Search said it’s likely to be just weeks before the top US firms raise again, most likely to £190k/£195k.

Russian billionaires out, US billionaires in: Mapping London’s super-prime property market

Timur Kulibayev is not one of the more notorious billionaire oligarchs with a significant property portfolio in London.

The Kazakh billionaire, whose father-in-law is Kazakhstan’s former autocratic president Nursultan Nazarbayev and whose work on the board of Russian energy giant Gazprom has helped him to a fortune of an estimated £5bn, likes to keep a low profile and rarely courts public attention.

Nevertheless, the energy mogul’s recent decision to offload his two mansions on one of Mayfair’s most exclusive streets is noteworthy for watchers and insiders of the arcane and unusual world of London super-prime property.

41 Upper Grosvenor Street, which was picked up for a cool £35m by the Ben Williams-founded property investment firm North Wind Capital, has stood empty and in a state of increasing disrepair for roughly 20 years.

Its once-white stucco front is greyed from the fumes of passing SUVs. Its windows are boarded up either side of a letter box covered in Sellotape, which is accompanied by a sign requesting no junk mail.

The mansion’s dilapidated state and the identity of its former owner—who is also trying to sell the adjacent 42 Upper Grosvenor Street—reflect the health and evolving nature of the market in which it exists and potentially even London’s place in the world.

What is happening in the London super-prime property market?

“There is no doubt that we are at a low ebb of a seven-year downward cycle of prices,” says Stuart Bailey, who heads up super-prime sales at Knight Frank. “We’re down between 16 and 17 per cent since the peak of 2015, and London – unlike the countryside – has stayed pretty flat in the past two years or so.”

Prior to the unsettling effect that the UK’s decision to leave the European Union had on the famously international super-prime market, London was seen as the most desirable place for the world’s high-flyers to establish roots and do business.

Between 2007 and 2014 Knight Frank saw a 63 per cent increase in the number of annual super-prime transactions in London, which generally encompasses homes that sell for £10m or more.

And the city ranked top in the estate agent’s 2015 Global Cities Index, an annual assessment of the ‘important’ cities to ultra-high net worth individuals.

“The rule of law, determined and strong politics, good policing, and world-leading hospitality and services industries all helped stand London out from the crowd for international super-prime buyers,” says Bailey.

“Things haven’t fallen off a cliff, but Brexit, followed by a pandemic, followed by a high interest rate environment have all meant that we have seen a slow decline over seven years.”

The end of ‘Londongrad’

Along that timeline outlined by Knight Frank’s Bailey is another seismic global event that one might assume will have further amplified the market’s decline.

Russia’s invasion of Ukraine prompted the UK government to introduce strict sanctions on super rich Russians with ties to the Putin regime, including seizing oligarch-owned homes. The value of these homes totalled an estimated £800m, according to a Panorama analysis, signalling a potential end to the years of former Soviet bloc kingpins using London as a laundromat.

To be clear, Kulibayev resigned from Gazprom after the Russian invasion of Ukraine and unrest in Kazakhstan. He is not known to be close to the Russian regime in any way.

In the years before the incursion, Britain’s capital became known as “Londongrad,” in recognition of the ex-Soviet oligarchs who had shored up their rapidly accumulated wealth in the city’s unplunderable high-end bricks and mortar.

(credit Wetherell)
For Sale: £29.95m (credit Wetherell)

But in Bailey’s view, the end of Londongrad significantly predates February 2022. “Even before Russia’s invasion of Ukraine, Russian buyers and Russian activity in London had already massively subdued from the heady days of 10 to 15 years ago,” he says.

Now, property agents like Knight Frank, Savills and Beauchamp Estates are looking both west and even further east for the international money that has dominated London’s super prime market in the last 30 years.

“Nowadays there are plenty of Chinese buyers in London. Quite often we’re finding their move is education-based, with their kids moving and living and being educated here. And North Americans are also buying in London – they’re pretty discreet – but they’re very much there.”

This latter cohort has made the most of the dollar’s continued strength to become a major force in the higher end of the capital’s property market.

According to the luxury estate agent Beauchamp Estates, US ultra-high net worth buyers accounted for half of sales worth £15m or more in 2022, a trend which Gary Hersham, the estate agency’s director, says continued last year along with an uptick in Middle East buyers.

“Buoyant oil and gas prices and booming domestic property markets have generated huge cash reserves in Saudi Arabia, Abu Dhabi and Dubai, and the Sheikhs have chosen to invest a significant chunk of these revenues in London super-prime residential property,” he says.

Sold for £25m on Park Street (credit Wetherell)
Sold for £25m on Park Street (credit Wetherell)

“The Middle East and American buyers have made their purchases in London’s so-called platinum triangle – Mayfair, Belgravia and Knightsbridge, which is why these three addresses have been where the most £15m plus deals took place in 2023.”

What type of home do the ultra-rich want?

The profile of buyer isn’t the only thing that has evolved. According to Bailey, the type of home that ultra-rich house hunters are looking for is changing too.

“There’s a real demand now for large, newly refurbished single unit houses,” he tells City A.M. Whilst those lateral apartments in newly done schemes with amenities and security that have dominated the market in recent years remain popular – and are getting the highest prices per square foot – now, turnkey, newly done houses in very good condition are in very high demand.”

This change in tastes helps explain North Wind Capital’s interest in Kulibayev’s Upper Grosvenor Street home. In line with Bailey’s experience, the private equity property firm plans to redevelop the dilapidated mansion before putting it back on the market.

If they truly want to reflect the super-prime market’s changing of the guard, all they’ll need next is to find an American or Arab billionaire.

This article has been edited.

EP: 271 Newbury & Hong Kong

The Group 1 Lockinge Stakes, won in the past by the likes of Frankel and Baaeed, is the feature race at Newbury on Saturday where you can, once again, bet into the unique Worldpool markets.

City AM Racing editor Bill Esdaile previews the best of Newbury’s racing action with an eye on the Worldpool markets, plus Wally Pyrah looks forward to Sunday’s meeting in Hong Kong. Hosted by Chris Barnett.

The Punter

‘The Punter’ has been City AM’s dedicated sports betting section for over a decade with a primary focus on horseracing. Throughout the season ‘The Punter’ will preview the weekend’s action every Friday along with in-depth coverage of all the major racing festivals. In a partnership with the Hong Kong Jockey Club, ‘The Punter’ also previews every midweek Wednesday Hong Kong meeting as well as all the major meetings.

Every Friday, and for all major racing Festivals, the City AM racing podcast will give you in-depth analysis of the action. Featuring interviews with leading trainers, jockeys and owners, the podcast is hosted by well-known racing broadcaster Chris Barnett who is joined by Bill Esdaile and Hong Kong racing expert Wally Pyrah.

Bill Esdaile

City AM’s racing editor Bill Esdaile has written for the paper since 2008. He had previously written for publications including the Sporting Life, Racing Post and The Sportsman. Each week he picks out his best bets for the weekend’s big racing action.

Chris Barnett

Chris Barnett has been a broadcasting specialist for over two decades, specialising in radio, video and podcast presentation and production. Since working at SIS, Betfair Radio, Timeform Radio, Royal Ascot, Glorious Goodwood, Cheltenham Festival Radio and more recently, Arena Racing, Chris has always been at the forefront of the top sporting events, grabbing interviews with those that matter.

Sunday Times Rich List sport: Lewis Hamilton, Jim Ratcliffe and Eddie Hearn

Seven time Formula 1 champion Lewis Hamilton has entered the Sunday Times Rich List for the first time in 2024.

His £350m fortune is expected to rise after he joins his Mercedes rivals Ferrari before the 2025 F1 season.

It has been seen as one of the most notable transfers in the history of sport.

Here are five notable inclusions in the Sunday Times Rich List from the world of sport.

Ineos

The top sporting name in this year’s list is Sir Jim Ratcliffe. The mogul of chemicals form Ineos last year completed a 27 per cent acquisition of Manchester United to expand his sporting portfolio into the Premier League.

The Old Trafford club join a family which includes other, European, football clubs, an America’s Cup sailing team, a stake in Mercedes F1, a Grand Tour cycling team and sponsorship interests with the All Blacks rugby team.

Ratcliffe comes in at No4 on the rich list, valued at £23.519bn. At No22, and the next most notable sporting name, is John Reece – also of Ineos – who joined the Manchester United board after the Ratcliffe deal went through.

Reece has a net worth of £7.224bn.

West Ham

Pivotal to this weekend’s Premier League title race given their final fixture sees them take on Manchester City, West Ham have an interesting group of owners including the Sullivan family and Daniel Křetínský, who is aiming to buy the Royal Mail.

Both make it onto the list.

The “Czech Sphinx” as he is known comes in at No33 on the Sunday Times Rich List and is valued at £6bn.

The Sullivan family – dad David and sons Jack and David – come it at No150 on the list with a combined net worth of £1.168bn.

Jack Sullivan told City A.M. this week that he does not see his “workaholic” father retiring from West Ham anytime soon, while admitting he had no idea how Křetínský became known as the Czech Sphinx.

Bernie Ecclestone

One of sport’s major personalities, Bernie Ecclestone, of course makes it onto the list.

The 93-year-old former F1 boss was spared jail last year after admitting tax fraud at a London court.

His civil settlement with HMRC saw him pay over £650m to the Treasury but he is 92nd on the rich list with a wealth value of £1.844bn.

His Ex-wife Slavica Malic has recently set up an office to manage the duo’s $881m divorce settlement.

He is also being sued by former F1 racer Filipe Massa.

The Hearns

The Hearns have bust into sporting publicity of late with recent comments about the future of snooker at Sheffield’s Crucible Theatre and increased business with Saudi Arabia in the world of boxing but Barry and son Eddie have been in the business for a long time.

And their recent deals in the Middle East are paying dividends with the duo and their family No185 on the list with a valuation of £900m.

With Anthony Joshua on the books with Matchroom and Barry slowly handing over operations to a son with a new vision in the modern sporting world, it would not be a surprise to see the family reach the £1bn threshold in the coming years.

Lewis Hamilton

Lewis Hamilton, the greatest British motorsporting figure ever, is on the list at No350, the very bottom position in the Sunday Times Rich List.

His £350m valuation stems from a number of notable business interests outside of Formula 1 but the racing certainly drives his celebrity status and his mega move to Ferrari before the start of next season has already caused a spike in reported interest in the Scuderia.

The 39-year-old has charity as a key part of his purpose at the moment but that’s not denting his wealth.

Sunday Times Rich List: Others

Dave Hill: Daftness and music at Soho Theatre

Dave Hill’s Ohio drawl has discernible traces of Irish, belying his Irish American roots. But that’s not what he hits you with first. He bursts onto the small Upstairs space at the Soho Theatre, crashing through the swing doors on a child-sized bike, a bicycle helmet and a red onesie.

He’s then begins to fling popping firecrackers, artificial snow and fog at the audience, and flinging the microphone by its cord while attempting a solo. He slips on his own snow, fails to catch the mike and hits one duff note after another. “Well I think I nailed that. Let’s keep things moving”. The man’s daftness is endearing, growing on you until you succumb and belly laugh at very little indeed.

This one hour stand-up show mixes electric guitar playing – for which he has an obvious talent – and rants about some very local gripes. On the evening I attended, he took a swipe at Poundland, the London Underground, and online tracking cookies. One cannot suppress the sneaking suspicion that these are constructed on the night, perhaps after tipoffs of who might in the audience: a Poundland regional manager must have been in on my night.

The rants are jolly and harmless: his chosen targets are unlikely to take offence. His most funny skit is a recounting of the miracle of loaves and fishes and it’s the details that will kill you: 

“But Jesus, dude, nobody drinks rose'”

“Talk to me again in two thousand years, you loser!”

An evening with Dave Hill is time and money well spent: an instant mood boost and a lasting grin on your face. More please!