An activist investor linked to THG has collaborated with a former director of Matthew Moulding’s ecommerce company to create a new acquisition firm, Selkirk, which will soon debut on London’s junior stock market.

Kelso Group has declared its position as the primary shareholder in this cash shell, led by a director from THG who resigned following a shareholder uprising.

Iain McDonald, who concurrently serves on the board of Boohoo, is poised to take on the role of executive chairman at Selkirk. The firm aims to raise £7.5 million through a placing on Aim prior to the month’s end.

An influential figure in investment, McDonald founded Belerion Capital and was appointed to THG’s board in 2010. He stepped down from his non-executive director role earlier this year after facing pushback during THG’s annual meeting, where shareholder groups questioned his independence due to his extended tenure.

Kelso, which holds a minority stake in THG, is backing Selkirk’s launch in partnership with Belerion Capital to focus on both private and publicly listed firms within the consumer, technology, and digital media industries, aiming for companies valued between £30 million and £1 billion. Kelso and Belerion are expected to hold stakes of 20% and 18%, respectively.

McDonald remarked, “We believe that many promising and undervalued entities are concealed within UK-listed conglomerates. Our goal is to unlock value in technology, consumer, or digital media sectors.”

He added that the decision to list on the Aim market is due to London’s stature as a leading capital market, providing an avenue for investors to engage with a focused and potentially unique asset.

In a statement, Selkirk announced its intention to achieve “private-equity-style returns on the public market,” with plans to secure its first deal within 18 months. The firm has not yet initiated talks with any potential targets and will utilize the funds from the share placing for operational needs and due diligence on prospective companies.

Kelso itself is publicly traded and actively seeking investments in small and medium-sized enterprises. Recently, John Goold and Mark Kirkland, CEO and CFO of Kelso, stepped down from The Works’ board, citing the retailer’s return to a growth trajectory.