Companies: ARE    CNE    FWY    HAMP    HILS    LEG    QDG    REF    WDNY   

If an entrepreneur has made money once for investors, will it happen again? Judging by the following some entrepreneurs had in 2000, investors believed it. But the 2000 bunch has had its day. Who's up-and-coming now?

The roll-call of 'old school' names is long and familiar - Luke Johnson, Mike Edelson, Nick Leslau, Nigel Wray, Chris Akers, Stephen Dean. These are businessmen who have often injected their own money into a range of small businesses. They then use their extensive network of contacts in the hope of raising more capital for the businesses - and hopefully making a tidy profit for themselves en route.

The styles and preferences of these entrepreneurs vary a great deal. Manchester United non-executive Mike Edelson is known as The Shellmeister, due to his prolific spawn of shell companies named after Cheshire villages. He often finds arthritic old companies, buys a large stake for a knock-down price and cleans the old business out. The clean shell is then touted as a cheap new home for an ambitious company wanting to list without the hassles of the complete listing procedure. The share price rises from the depths as investors are attracted by the new business and the Edelson track record, and the Shellmeister takes his cut.

Property entrepreneur Nick Leslau has had a mixed bag. One of the 'Awesome Foursome' connected with the Knutsford/WILink reversal, he is also involved in Streetnames, Safestore, Nottingham Forest and Hartford. This little portfolio spans football, investor relations, property and the internet. But many of them have performed poorly - with only Safestore providing a decent return.

In a similar fashion, Leslau's business partner Nigel Wray spread his tentacles wide. Away from his original grounding in media and property, he is now connected with a vast number of businesses, including brokerage Seymour Pierce, Michael Ashcroft's Carlisle, Domino's Pizza, PrintPotato and TranXenoGen.

So how can you spot the next group of entrepreneurs? Graham Summers of Wise Speke in Newcastle says that a sensible approach would be 'to follow the guys with a venture capital approach - the people who actually make a difference to the business. They carry so much weight, and attract a decent following, so the share price [of the businesses they are connected with] can double or treble. And unlike some of the other higher profile names, they are there to make money for investors as well'.

Summers astutely points out that some of the best entrepreneurs are, unfortunately for private investors, still languishing in the Big Company environment. 'They are not always willing to step out of the big company fold, because that is a very big risk for them'.

Another characteristic to look out for is the experience factor. 'If they have been around a bit, if they have had their fingers burnt once or twice, they are less likely than some of the younger guys around today to do it again', explains Summers.

Andrew Buchanan, director of Close Investments, strikes a cautionary note. 'These people attract investors thanks to heavy press attention, but we are not overly attracted by the names themselves. Most Aim companies which we look at are run by people who, if they are entrepreneurs, are doing it for the first time. However, there are a couple of names which catch the eye - Baltimore's Henry Beker, who is on the board of several small IT companies, and Sir Chris Evans, the biotech guru'.

There are signs that the ground may be shifting, however. Peter Webb, the highly-respected smaller companies specialist at Eaglet Investment Trust, says that in the coming years, the emphasis will be less on 'serial', more on entrepreneurship itself. 'On the back of the biggest bull market in living memory, these guys [Luke Johnson, Mike Edelson et al] appealed to the fashion of the moment. They made their shells and floated their vehicles, but now they are falling away. The people to keep your eye on now are those who focus on one area, and do it damn well. These are the people with good management skills and a sound understanding of the business they are in. Nevertheless, the key requirements of having a basic sum of money and then spotting a gap still apply'.

Echoing what Summers says about the new generation of entrepreneurs, Webb points out that there are a number of very talented individuals working in large organisations. 'The independent fund management industry is one which will be massive', he predicts. 'For too long the big broker houses have been more concerned with the corporate relationship and the potential of corporate finance work. Now the best guys are leaving the big houses and setting up by themselves'. He cites Tony Dye (ex-PDFM), John Duffield (ex-Jupiter) and Emmanuel Arbib (ex-Perpetual) as examples of 'the City losing their best people'.

Ones to Watch

Shami Ahmed

The founder of Joe Bloggs Jeans and Legendary Investments. Ahmed's wealth has been made on the back of some clever investments and a number of good deals. Ahmed has backed several ventures with his own money, of which Legendary is a fairly modest one. It has recently suffered from the lack of confidence in internet investment vehicles, but has at least survived.

Pierce Casey

A chartered accountant and venture capitalist, he was a founder director of Fayrewood. He spent time in senior positions with DCC in Ireland, latterly in London, as a director of its UK subsidiary. In 1988 he formed Equity and Corporate Finance, a corporate finance and investment company, that has been involved in several highly successful investments including Fayrewood. He is a director of Apax Partners private equity funds and is a director of several public and private companies across Europe, including ComputerLinks where he is Chairman of the Supervisory Board.

Michael Frye

In February 2000, Frye picked up nearly 25 per cent of Widney, since when he has 'cleaned up the business'. Frye has a good reputation in the high-tech/engineering business, and is closely linked to Joe Bloggs jeans entrepreneur Shami Ahmed (q.v.). Frye is involved with him in Legendary Investments, and in sorting out reflective inks business Reflec. Frye is also involved in a seed capital fund, in partnership with Noble & Co. He likes backing 'British companies and British talent', and has several 'other things on the go'.

Hamish Grossart

After a career in investment banking, he became managing director of EFT - subsequently sold to Bank of Scotland. He was also chairman of Eclipse Blinds, Scottish Highland Hotels and Hicking Pentecost. He is currently chairman of Royal Doulton, and deputy chairman at Cairn Energy and Scottish Radio. A very well-connected and well-respected figure in the Scottish investment landscape.

Graham Hampson Silk

Ambitious and active Midlands-based chairman of Wolverhampton Business Airport, Hampson Silk is also involved in the film industry. He was co-executive producer of quirky British comedy 'Shooting Fish', as well as being a major shareholder at Hill & Smith, market leaders in the unglamorous world of crash barriers. His day job is at Hampson Industries, a group of aerospace engineering businesses with annual turnover approaching £100 million.

Trevor Hemmings

Hemmings started his own building firm before selling it, just before the property slump in the early 60s. He then started another building company before selling out to Barratt Homes. The serious money came when he sold the Pontin's holiday business (which he had been involved with) to Scottish & Newcastle in 1989, netting himself £100 million in S&N shares. Now retired from S&N, his private interests are largely concentrated in his TJH group, whose activities include property, plant hire, civil engineering, racehorses and computers. Among its investments is a £258 million stake in the Arena Leisure group. Jersey-based Hemmings keeps a low profile, but occasionally hits the headlines over his business deals. In 1998, he acquired Blackpool Tower for £74 million with ambitions to turn it into a British Las Vegas. He recently bought the Littlewoods' pools operation from the Moores family for £161 million. This was a very shrewd deal, as it was well under the £250 million the Moores wanted.

Jeremy Peace

A chartered accountant by training, Jeremy Peace is something of a serial Aim animal. He worked in stockbroking before joining Singer & Friedlander, before becoming director of Morland Securities (re-named Access Satellite International), then chief executive of Sangers Photographics (now Quadrant). He was briefly a non-executive director of South Country Homes (now Mazaran Leisure), and is now on the boards of printing business Thomas Potts and property developer London Town, as well as US-based internet bank e-primefinancial.