Electra Private Equity is to cut the fees it pays to fund manager Electra Partners, introduce dividends and reduce debt, following an internal review in the wake of demands from activist investor Sherborne Investors.

Last year Sherborne, Electra PE's largest shareholder, demanded that the listed company change its board and launch a strategic review of its operations. Despite more than 60% of shareholders voting to reject Sherborne's proposals, Electra PE launched the review in October following discussions with shareholders.