Update on Sherborne Investors Management

Electra Private Equity PLC Update on Sherborne Investors Management Electra Private Equity PLC ("Electra" or "the Company") received a request fromMr. Edward Bramson of Sherborne Investors Management to meet with the Chairmanof Electra, Mr. Roger Yates. On 24 July 2014, Mr. Yates, together with a fellow non-executive director Mr.Geoffrey Cullinan, met with Mr. Bramson. At this meeting, Mr. Bramson requestedthat three new directors be appointed to the Board of Electra. One of those newdirectors would be Mr. Bramson and the other two, as yet unidentified, would benominated by him. Mr. Bramson also requested that, subsequent to theirappointment, he should be given a mandate to lead a strategic review of theCompany. No specific proposals were presented by Mr. Bramson. The Board of Electra has carefully considered Mr. Bramson's request and hasdecided to reject it. The Board of Electra actively keeps the Company's strategy under regularreview, is of the opinion that the current strategy has delivered consistentlysuperior long-term returns for all shareholders and sees no reason to deviatefrom this successful strategy. Over the 10 year period to 31 March 2014, Electra has delivered a share pricetotal return of 268%, more than double the total return of the FTSE All-Share(129% over the same period) and more than six times the total return for theMorningstar Private Equity Index* (39% over the same period). The Company'sdiluted NAV per share total return for the period is equivalent to a ten-yearannualised return on equity of 14%, at the upper end of our target range of10-15%. The Board of Electra has a long-standing policy of being comprised wholly ofindependent non-executive directors. Mr. Bramson, representing a c.19%shareholder in the Company, would not be independent. The Company'sconsistently superior performance over the long term provides clear evidence tosupport this policy of complete independence. The Board has always listened, and will continue to listen, to the views ofshareholders consistent with enhancing long-term shareholder value. The Boardbelieves that maintaining an open dialogue with shareholders and a whollyindependent Board structure best enables the Board to consider the interests ofall shareholders without undue influence from any quarter. Enquiries Goldman Sachs International +44 (0) 207 774 1000 Anthony Gutman Alex Garner Ken Hayahara J.P. Morgan Cazenove +44 (0) 207 742 4000 Michael Wentworth-Stanley William Simmonds Greenbrook Communications +44 (0)20 7952 2000 Andrew Honnor Charlotte Balbirnie Matthieu Roussellier * The Morningstar Private Equity Index is a bespoke index prepared byMorningstar UK Limited reflecting the performance of 19 private equityvehicles, excluding Electra, quoted on the London Stock Exchange.