Exclusive: IS Prime returns £3 million to shareholder ISAM in return of capital

LeapRate Exclusive… LeapRate has learned from industry sources that FX liquidity and prime brokerage services provider IS Prime has returned £3 million in capital to its major shareholder, International Standard Asset Management (ISAM).

FCA regulated IS Prime is controlled by ISAM, an alternative asset manager which specializes in quantitative investing. ISAM set up IS Prime in 2015, hiring a team from Sucden Financial led by Managing Partners Raj Sitlani and Jonathan Brewer to run the company.

The decision to return capital was taken, apparently, after robust results exceeding expectations were achieved for the company’s fiscal year ended March 31. Last year (12 months ended 31/3/2016), its first full year of operation, IS Prime earned net profit of £940,000 on Revenues of £6.0 million. During fiscal 2016 ISAM put an additional £3.0 million of capital into the business to help support its growth.

While it hasn’t yet reported specifics, it looks like fiscal 2017 saw more growth and healthy profitability, allowing ISAM to take its capital back out.

Raj Sitlani, Managing Partner at IS Prime, told LeapRate:

Preliminary results show that IS Prime’s financial performance for the year 2016/2017 has considerably exceeded expectations.

Accordingly the board decided to return £3m in cash to the majority shareholder, thereby cancelling the E-class shares issued as start-up capital over 2 years ago.

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