Capula Group Ltd

Overview
We invested in the secondary MBO of Capula Group Ltd in August 2006, backing the management team which was led by Capula's CEO Roger Turner. The company is the UK's leading independent provider of real time IT solutions to the energy and utility markets. We provided funding alongside a debt facility provided by Barclays Leveraged Finance. The business was bought from Bridgepoint in a transaction valued at £30 million.

Deal Features
Capula is a clear market leader in its field and the accomplishments of the management team were a key factor in our decision to make the investment. Capital investment in the nuclear, power generation and utilities sectors is poised for considerable growth. Among other factors, we were attracted by a sector where government legislation and efficiency gains are driving increased capital expenditure. With strong technical expertise and a track record of delivery, Capula is well placed to benefit from this increased investment.

Business Description
Capula was established in 1970 and now employs more than 180 staff at offices in Staffordshire, Gloucester and Cumbria. The company provides real time automation systems to the nuclear, power generation and utilities markets, a specialised business which involves complex software programming and systems engineering. Capula has a strong market position in its core markets of power generation and the nuclear industry, providing IT systems which control much of the electricity distributed across the UK and IT services to the majority of the plants at the Sellafield nuclear site. In addition, Capula is the only UK company with a 100% track record of on time delivery of IT systems to the UK's coal fired power stations.

Capula's perspective
Roger Turner, Capula's Chief Executive added, "Very quickly the team from Dunedin gained an appreciation of our business and the future growth potential in our markets. They have an open and straightforward approach to business, which is appealing. We needed a team we could trust and work closely with. I believe these are key attributes in any successful business partnership and the main reasons for selecting Dunedin as our financial backer."