Vallares Fund-Raising Poses Key Question, Lambert Writes in FT

Vallares Plc, an investment vehicle that plans to invest in oil and gas assets, raised 1.3 billion pounds ($2 billion) in a share sale this month, about the same amount as was raised in the whole of last year by U.K. companies in new equity, net of buybacks and acquisitions, Richard Lambert wrote in the Financial Times.

Lambert, who headed the CBI employers confederation until the start of the year, said that’s remarkable, given that Vallares, set up by Tony Hayward, BP Plc’s former chief executive officer, and financier Nathaniel Rothschild, has no operating history, no revenue and no basis on which to assess its ability to meet its objectives.

John Kay, who was appointed by the government last week to review how the British equity market functions, should focus on why it’s so easy to raise money for a vehicle such as Vallares and so difficult to find equity capital for the long-term investment on which the country’s economic wellbeing depends, Lambert said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

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