A LITTLE-known hedge fund manager has bought almost eight per cent of Holmes Place just over two weeks before the troubled health club chain delists from the stock market and is acquired by itsmanagement.

Strangely, SISU Capital has no plans to destabilise the 24.5 million management buyout. It started buying shares after private equity firms Bridgepoint Capital and Permira announced they were financing a buyout of Holmes Place and would pay investors 25p per share. SISU recently paid more than 25p for shares.

SISU’s unexpected interest alarmed Bridgepoint and Permira, which feared it would use its stake to block the MBO.

However, they have received assurances that SISU has no such plans.

SISU declined to comment, but one City banker said: ‘It thinks Bridgepoint and Permira are taking advantage of Holmes Place’s situation and stand to make a lot of money from this deal.

‘SISU likes the health club industry and believes that Holmes Place, if run properly, could become market leader.’ SISU executives are believed to have met Holmes Place’s new management team and offered their support.

Under the terms of the buyout, Holmes Place, which has 67 clubs nationwide, has the right to embark on an equity fundraising that could result in a dilution of SISU’s stake.

The terms also exclude the payment of dividends to minority shareholders.

However, SISU has apparently accepted both these conditions.

Holmes Place, which will delist on August 20, closed on Friday at 26p.