* Interim findings of strategic review prompt changes
* Seeks CFO, to appoint new non-executive directors
* Serves notice on investment manager Electra Partners
By Simon Jessop and Anjuli Davies
LONDON, May 26 (Reuters) - Electra Private Equity on Thursday appointed activist investor Edward Bramson asinterim chief executive and served notice on its investmentmanager Electra Partners, as part of an ongoing review.
Bramson, whose Sherborne Investors investmentvehicle is the biggest shareholder in Electra, fought a long andbitter campaign to join Electra's board as part of a plan tooverhaul one of Britain's oldest private equity firms.
He won that battle in late November by getting a seat on theboard, which opened the way for a root-and-branch review ofElectra's operations.
Bramson has criticised Electra for a lack of openness andhas said there is more value to be found in the company'sportfolio, which includes the restaurant chain TGI Fridays inBritain.
Bramson's company Sherborne also criticised the relationshipbetween Electra Partners, the fund manager which oversees itsinvestments, and its main client Electra Private Equity, arguingthat sound principles of corporate governance demanded that aninvestment trust's board and its fund manager operate at arm'slength.
Electra has given Electra Partners 12 months' notice of itsintention to terminate their tie-up to give the boardflexibility to any make potential changes resulting from thereview, which is due to be completed by the autumn.
"The changes announced today are designed to strengthen thecorporate governance of the company and provide the board withthe necessary support to undertake its detailed review ofstrategy and structure," Neil Johnson, chairman of ElectraPrivate Equity, said.
"The decision to serve notice to Electra Partners is apragmatic step that will allow the board to act on any specificrecommendations of the review in a more timely way."
Electra Partners said it was surprised and disappointedabout the decision, citing its excellent returns over the longterm.
"We are proud of our exceptional performance record," AlexFortescue, managing partner of Electra Partners, said. He saidhe expected the firm to continue to thrive with access tosignificant capital resources, given it had received numerousapproaches from other potential investors.
Electra said Electra Partners would continue to provide thesame administrative and investment services during the noticeperiod, although there might be some constraints on the rate ofnew investments.
Electra also left the door open for a new contract to besigned.
As well as Bramson's appointment as interim CEO, the firmsaid it would start looking for a chief financial officer. Ithas also asked ex-Aviva Investors chief investment officer DavidLis and former Barclays Private Equity managing director PaulGoodson to join the board as non-executive directors. (Reporting by Simon Jessop. Editing by Jane Merriman)
