Walker Guidelines

Walker Report

In 2007 the British Venture Capital Association (“BVCA”) and a group of major Private Equity firms commissioned Sir David Walker to undertake an independent review of the adequacy of disclosure and transparency in the private equity industry with a view to recommending a set of guidelines for conformity by the industry on a voluntary basis. The Guidelines for Disclosure and Transparency in Private Equity (the “Guidelines”) were published in November 2007 and adopted by the BVCA with expectations that the implementation of these guidelines and recommendations will mitigate many of the concerns surrounding buyout activity and provide for a better understanding of how private equity operates and its contribution to UK economic performance in terms of employment, productivity, investment and growth.

Dunedin also believes that the Private Equity industry should provide a better understanding of how it works and contributes to the wider economy and although Dunedin’s investments do not fall under the guidelines and therefore disclosure requirements on us as a firm do not apply, we are voluntarily seeking to comply with the Guidelines wherever possible.

History and Investment Focus

Dunedin was first incorporated in 1983 as British Linen Fund Managers Limited, a subsidiary of the Bank of Scotland. The company was renamed in 1996 when the directors of the company carried out their own management buyout and Dunedin Capital Partners Limited was established.

Dunedin is an independent company majority owned by its directors and staff. It employs a highly experienced team including 16 investment professionals with experience through several economic cycles. The team operates from offices in Edinburgh and London.

Consistent with successful past practice, Dunedin invests in UK lower mid-market buyouts with a transaction size of £20m – £75m and an equity cheque of up to £50m in a range of sectors. Dunedin invests throughout the UK, focusing on companies with a number of the following characteristics:

Proven management team with the desire to create and deliver value;
Strong market position, niche or brand;
Clear organic growth potential;
Potential for buy and build or roll-out;
Barriers to entry; and
Legislation-driven products or services.

Case studies and further details on our approach can be found in the investments section of our website.

Management

The Management Company which has responsibility for the management of Dunedin funds is Dunedin Capital Partners Limited. Its Chairman is Simon Miller and its Chief Executive is Ross Marshall. Further details of the directors of the company can be found on the Team page of our website.

Dunedin is regulated by the Financial Services Authority (“FSA”) and does not have any offices outside the UK.

Investors

Dunedin has more than £400m under management. This is managed on behalf of three limited partnership funds and a publicly-quoted investment trust. The current fund, Dunedin Buyout Fund II (“DBF II”) was raised in 2006. The investors (limited partners) in the fund are made up of a range of institutional investors who are experienced in investing in private equity products. Staff members of Dunedin are also investors in the funds.

A breakdown of investors in the fund by geography is shown below:

A breakdown of investors in the fund by type is shown below:

Conflicts of Interest

Dunedin has structured itself to avoid potential conflicts of interest. Dunedin’s primary activities undertaken on behalf of its clients are; management buyouts, management buyins, public to private transactions and investment in quoted private equity. Dunedin does not have any separate corporate advisory or other related areas of business.

To the extent that any conflicts of interest do arise, Dunedin has established procedures to identify and manage these conflicts. There are risk management procedures in place to cover, amongst others, the following potential conflicts of interest;