IFSL RC Brown UK Primary Opportunities | Fund Update | June 2025
June: UK mid cap strength amidst further M&A activity
The FTSE 100 (+0.1%) edged higher but it was the FTSE 250 (+3.2%) that led the way as two further bids for UK mid caps emerged at significant premiums (both in excess of 80%) for Spectris and Alphawave, as modestly valued companies continue to be taken private. There have now been over thirty bids in 2025 for London listed companies with market capitalisations in excess of £100m. As we have noted before, a shrinking stock market is not unique to the UK and we are actively supporting initiatives to increase the attractiveness and number of entrants on the London market. Whilst we do not expect significant IPO activity this summer, we are aware of a growing number of companies that are aiming to list later in the year or early next year. ft.com Private equity-backed Visma picks London for blockbuster tech IPO
It proved a volatile month for oil, touching $80 before ending the month below $70, as a result of Israel’s attack on Iran, followed by a ceasefire aided by President Trump. The situation remains fluid albeit markets have acted with relative calm given the severity of the situation. Lower energy prices are deflationary and should encourage interest rate cuts. President Trump’s 90 day tariff pause is due to end on July 8, which could result in tariffs reverting back to the levels announced on April 2 – ‘Liberation Day’. Again, the market has proved sanguine on the expectation that the EU and China will agree a trade framework before this.
The Bank of England held interest rates at 4.25% as expected following May’s cut. Inflation fell marginally to 3.4% but future data will be closely watched by the Bank before further rates cuts are announced.
We participated in the placings of Rosebank Industries and Cerillion.
In June, the IFSL RC Brown UK Primary Opportunities fund returned 1.1% compared with 0.5% for the FTSE All Share and 1.3% for the IA UK All Companies sector, all on a total return basis.
Purchases
Rosebank Industries’ objective is to re-create the successful ‘Buy, Improve, Sell’ business model that the Co-Founders successfully implemented during their time at Melrose. Having led a successful IPO last year, we participated in its first major equity raise (of £1.1bn) in order to fund the acquisition of a US electrical components business. Management are targeting an improvement in the operating margin whilst the equity raise allows them to reduce the indebtedness of the company. The equity raise was significantly over subscribed given the track record of the management team. The shares are currently trading at more than a 10% premium to the placing price.
Cerillion is a software company that provides billing, charging and customer management services primarily to the telecoms industry. Their products help service providers manage subscriptions, automate billing and ensure accurate revenue collection. We acquired the shares as part of a placing by the founder at a discount of more than 20% to the closing price before the transaction was announced. Whilst a relatively highly valued company, we believe the placing discount will unwind as the company continues to deliver on expectations.
Sales
No sales were made during the month.
Cumulative Performance (Total Return %) – To 30 June 2025
| Fund/Benchmark Name | 3M | 6M | 1Y | 3Y | 5Y | 10Y | Since Inception (28/05/1997) |
| IFSL RC Brown UK Primary Opportunities P Acc | 6.2 | 8.9 | 10.9 | 20.1 | 40.4 | 84.1 | 543.7 |
| Quartile Ranking IA UK All Companies | 3 | 2 | 2 | 4 | 3 | 2 | 2 |
| IA UK All Companies | 7.5 | 7.7 | 8.8 | 30.1 | 52.0 | 69.5 | 387.6 |
| FTSE All Share | 4.4 | 9.1 | 11.2 | 35.5 | 67.7 | 92.7 | 451.4 |
Source: FE: 30/06/2025
Discrete Annual Performance (Total Return%) – To 30 June 2025
| Fund/Benchmark Name | Year to 30/06/2025 | Year to 30/06/2024 | Year to 30/06/2023 | Year to 30/06/2022 | Year to 30/06/2021 |
| IFSL RC Brown UK Primary Opportunities P Acc | 10.2 | 9.6 | -1.1 | -10.9 | 31.1 |
| Quartile Ranking IA UK All Companies | 2 | 4 | 4 | 3 | 2 |
| IA UK All Companies | 8.8 | 12.6 | 6.2 | -8.5 | 27.7 |
| FTSE All Share | 11.2 | 13.0 | 7.9 | 1.6 | 21.5 |
Source: FE: 30/06/2025
Please be advised that the past is not necessarily a guide to future performance. Investments and the income derived from them can fall as well as rise and the investor may not get back the amount originally invested.
