Dunedin, the UK mid market private equity firm, today announced that it has closed its third fund, Dunedin Buyout Fund III, at its hard cap of £300 million. The fund considerably exceeds its target of £250 million.
Dunedin’s third fund will invest in UK mid sized companies with an enterprise value of between £20 million - £75 million.
Dunedin has significantly diversified and expanded its investor reach since closing its second fund at £250 million in June 2006. 60% of the LPs that have committed to its third fund reside outside the UK, compared with 20% in 2006. Investors from the Nordics and the USA have invested in Dunedin for the first time, with increased investor interest seen in France, Switzerland and Germany.
Dunedin’s third fund has also attracted interest from a range of different types of of investors, with increased commitments from pension funds, insurance companies, sovereign wealth funds, and foundations.
This successful fund closing follows an active year for Dunedin.
Dunedin made its last investment from the £250m Dunedin Buyout Fund II in December 2012, with the £34.5 million management buyout of oil and gas manufacturer, Premier Hytemp; and it completed the first investment from its third fund in June of this year, with the £43 million buyout of technology solutions provider, Trustmarque Solutions.
In the last year, it has also completed three strong exits in the industrial and business services sectors, including bridging manufacturer WFEL; IT services provider, Capula; and conference and venues business etc. venues, achieving a threefold return.
The firm has enjoyed particular success in the industrial, business services and financial services sectors, completing seventeen portfolio acquisitions since 2011 in order to drive the growth and internationalisation of its investee businesses.
Dunedin has made a significant contribution to the growth of British businesses in the last 12 months, with its portfolio reporting 13% employment growth, 18% turnover growth and 10% growth in EBITDA.
Mark Ligertwood, partner at Dunedin who led the fundraising, commented: “The successful closing of our third fund at the hard cap of £300 million represents a key milestone for Dunedin. We worked diligently as a team to raise this new fund in an extremely challenging market, firmly beating our target of £250 million.
“We believe that this is an endorsement of the rigorous investment process and active portfolio management that we undertake to maximise returns for our investors.
“With our new fund in place, we are now actively looking to invest in UK headquartered business with a market leading position in their niche, and already have a full pipeline of interesting opportunities to explore.
“We’d like to thank our investors for their support.”