Simon Peckham, former chief executive of Melrose Industries, has launched a new business venture named Rosebank, which aims to replicate the "buy, improve, sell" strategy that brought him considerable success at Melrose. At 63, Peckham shows no signs of slowing down despite a recent prostate cancer diagnosis, which he says was caught early and treated without lasting effects.

Rosebank’s approach targets underperforming companies, focusing initially on heavily indebted U.S. engineering firms. Since its recent flotation on the London Stock Exchange, Rosebank has raised £3 billion to fund its acquisitions, which include CPM, a supplier of processing equipment; MW Industries, a precision components manufacturer; and ECI, an electrical components producer. All were previously owned by U.S. private equity firms burdened with significant debt.

Peckham, who trained as a lawyer in Newcastle upon Tyne, says Rosebank’s strategy involves reducing the debt load, cutting costs, boosting operational efficiency, and reinvesting in the acquired businesses before eventually selling them at a profit. He notes that approximately $1.7 billion of the total $3 billion purchase price for the latest acquisitions went toward debt reduction, resulting in annual savings of $150 million that will be reinvested into growth.

Despite Rosebank’s early progress, Peckham acknowledges the criticism Melrose faced as an "asset-stripper," a label also leveled against comparable firms using similar turnaround tactics. He maintains that his firms create value rather than destroying it, emphasizing the substantial tax contributions and investments made into the businesses they control. His defense comes amid lingering controversy following Melrose’s hostile takeover of the aerospace company GKN in 2018, which drew sharp rebukes from politicians and unions alike.

Peckham is candid about the challenges of raising and managing capital in the current regulatory environment, noting that compliance requirements and associated costs have dramatically increased since Melrose’s debut in 2003. He also highlights shifts in pension fund investments—citing changes introduced under former UK Prime Minister Gordon Brown—that have reduced UK asset allocations from around 60% to less than 5%, a development he views as detrimental to domestic business investment.

Though Peckham distances himself from the label of entrepreneur, stressing that he does not create new products but rather focuses on improving existing businesses, he expresses admiration for genuine entrepreneurs and business leaders. He also offers unsolicited advice to men over 50 to undergo regular prostate cancer screenings, drawing on his own health experience.

Peckham’s new venture arrives at a time when the London market has faced criticism for losing appeal amid global competition and regulatory hurdles. He suggests that with a solid business idea and credible management, capital can still be raised in London, though he feels the political and economic environment has been less than favorable for business growth in recent years.

Ultimately, Rosebank seeks to build on the legacy of Melrose by applying a similar model, albeit at a quicker pace, aiming to generate strong returns for investors while revitalizing debt-laden industrial assets on both sides of the Atlantic.