Moulton's Aerospace Jewel Prepares To Take Off

The private equity group headed by Jon Moulton, the veteran financier, has brought in advisers to sell its best-performing business after a string of soured investments.

Sky News has learnt that Better Capital has appointed Lazard, the investment bank, to oversee an auction of Gardner Aerospace, which supplies metallic parts to companies such as Airbus, Rolls-Royce and BAE Systems (LSE: BA.L - news) .

Sources said on Tuesday that Gardner, which has been owned by Mr Moulton's firm since 2010, could be worth up to £300m.

Gardner, which is headquartered in Derbyshire, has five manufacturing sites in the UK, six more in Europe and one in India.

The company also provides aerospace component repair services, and makes transmission components for heavy duty gearboxes for off-road vehicles.

The proceeds from the sale of Gardner will be crucial in determining the ultimate performance of Better Capital's maiden fund.

In its most recent update to the stock market last November, Better said:

"Exit preparation is underway with a view that [Gardner] will come to market in late 2016.

"We, the Fund I GP [general partner] remain confident that Gardner will deliver a strong overall return to Fund I."

The investment vehicle, which changed its chief executive late last year, has effectively been shrinking through the disposal of other assets, including Fairline, the yacht-maker, which collapsed into administration just weeks after it was sold by Better Capital.

Better also recently sold Santia, a supplier of health and safety risk management services, to Inflexion, another private equity firm.

It (Other OTC: ITGL - news) continues to wrestle with mediocre performance at Jaeger, the high street fashion retailer, where a sale was explored before the crucial Christmas trading period.

Better specialises in acquiring troubled companies and turning them around, but its experience with City Link, the courier company which fell into administration on Christmas Eve 2014, has fuelled doubts that the firm will seek to raise a third fund.

A Better spokesman declined to comment.