Former Fiera and Palmer bosses to back next generation of asset managers and developers - 16 September 2024

Published by Green Street News on 16 Sep 2024 08:20 BST | written by David Hatcher

Price and Wright back in business to make venture capital plays

Wright (left) and Price have formed Ashen Capital

• What Alex Price and Steven Wright have launched Ashen Capital
• Why To invest into emerging asset managers and property companies, as well as to back select development projects
• What next The business will initially seek to deploy in the region of £20m across around five opportunities

Former Fiera Real Estate and Palmer Capital boss Alex Price has rejoined forces with Steven Wright to launch Ashen Capital, Green Street News can reveal.

The duo, who worked together at the firms for 15 years, have created the new venture to provide venture capital backing to asset management and development companies, a segment Ashen says is “underserved” in terms of available capital.

It expects to deploy an initial £20m across around five firms, as well as selectively back individual projects where value can be added through active management. Ashen has been backed by seed capital from the management team as well as a network of high-net-worth investors.

“Ashen’s mission is to help grow smaller property businesses by providing three separate strands of support: management expertise, working capital and access to an institutional investor base.” Alex Price, Ashen Capital

The West End-based investor will typically take stakes of 15%-30% in asset managers and 25%-33% in developers. Ashen aims to be a “strategic investor” that will help provide start-up cash and build balance sheet capital to utilise alongside firms’ future joint venture partners.

Ashen is primarily aiming to back businesses focused on the residential sector, considering both equity and debt-orientated outfits, as well as a firm covering office and logistics in London and the South East.

Price, who has taken on the chief executive role, and Wright, who is managing director, will advise businesses they invest into how to create a professional and institutional infrastructure and culture, as well as putting in place technology to help companies scale. Ashen’s investments will have no specific time horizon but will be designed ultimately to help founders realise shareholder value.

Price joined Palmer in 2003 and was chief executive up until its acquisition by Fiera Capital in 2019, when he became head of the Canadian corporation’s UK real estate arm that Palmer evolved into. Having taken on a vice chairman role for 18 months, he left the business at the end of 2023 and has been providing debt financing to SME developers on a range of residential developments across the UK, as well as management advice to real estate firms.

Wright also left Fiera at the end of 2023, having spent 17 years at the firm and its predecessor, latterly as head of corporate investments. He subsequently spent a year at Legal & General Capital as a portfolio director for housing before joining Ashen.

During Price and Wright’s time at Palmer and Fiera they backed over a dozen UK property development companies such as Wrenbridge Land and Packaged Living, as well as having raised and deployed over £1.5bn of equity.

“An opportunity to professionalise”

Price said: “Ashen’s mission is to help grow smaller property businesses by providing three separate strands of support: management expertise, working capital and access to an institutional investor base.

“The team will focus on the UK residential sector but will also look at commercial property in London and the South East. We think market timing is good, especially in London and the South East of England, given strong rental growth prospects and the store of wealth it provides to international investors.”

Wright added: “Residential property is the deepest, most liquid and active property sector in the UK, but despite this it remains fragmented with an opportunity to professionalise across various parts of the sector.

“We have a unique track record, built over 20 years, that makes us an ideal strategic partner for real estate businesses seeking to accelerate growth.”