New commitment

Graphite Enterprise Trust PLC 24 April 2003 GRAPHITE ENTERPRISE TRUST PLC Graphite Enterprise Trust PLC (the 'Enterprise Trust') has made a commitment of £50 million to Graphite Capital Partners VI (the 'Fund') a new private equity fund raised by Graphite Capital Management Limited ('Graphite Capital'). John Sclater, Chairman, made the following comments: As with Graphite Capital's previous funds, Graphite Capital Partners VI will focus on small and medium-sized UK management buy-outs, buy-ins and development capital investments. There was high demand for the Fund from institutional investors, exceeding its maximum target size of £375 million. However, in the light of the successful, harmonious and long term relationship between the Enterprise Trust and its manager, Graphite Capital offered preferential terms to the Enterprise Trust for its investment. These terms specify that, although the management charges within the Fund are higher than those charged under the current management agreement between Enterprise Trust and Graphite Capital, there will be an offset to ensure that the overall charges from Graphite Capital to the Trust do not change. The carried interest arrangement within the Fund will also be identical to that already in place. Against these points the Board has had to weigh up the long term nature of the commitment to a fund with a life of up to twelve years and the possible dilution of influence that inevitably comes with investing alongside other investors. The Board is pleased to have agreed the terms and quantum of this new investment commitment with Graphite Capital. It secures for the Enterprise Trust an appropriate share of the investments generated by Graphite Capital for the next few years without suffering any increase in charges. The long term performance of the Enterprise Trust has been achieved largely from the investments sourced, monitored and realised by Graphite Capital and we are glad that this arrangement allows the Trust to continue its relationship with its successful manager. For further information, please contact: Rod Richards / William Eccles Tel: 020 7825 5300 Graphite Capital This information is provided by RNS The company news service from the London Stock Exchange
UK 100