Video: Dunedin’s Middleton on UK mid-market challenges

Source: UK unquote | 05 Feb 2014 | screening image

Shaun Middleton, managing partner of UK mid-market firm Dunedin, speaks to Kimberly Romaine about diversifying investor bases and the challenges facing this market segment.

Following its successful fund close in July 2013, reaching £300m for its third vehicle, Dunedin managing partner Shaun Middleton discusses European and US investor attitudes to UK private equity while out on the road.

This latest vehicle was tasked with diversifying its investor base as many of its previous LPs were banks or funds-of-funds that were no longer able to commit to the asset class. The buyout house, aware of the challenging fundraising market, crucially secured two international trade exits before going out to potential new investors. Dunedin exited WFEL to a trade buyer for 2.4x money in May 2012 and in the same month sold Capula to Dutch trade buyer Imtech.

According to Middleton: "We knew the market was tough even before we secured those exits but, when we launched the fundraising process, the perception of the UK had changed."

As well as receiving re-ups from around 50% of existing investors, Dunedin also attracted new investors from Europe and the US. "We had to go out to new markets and received strong interest from French and German investors. We also secured our first investment from a Nordic LP."

As appetite for UK and European private equity in the US had remained poor, Dunedin did not look across the Atlantic until it had reached a first close. "After a successful first close where we had reached over 60% of our target, we went over to the US at the beginning of 2013," explains Middleton. "The perception of the UK had changed in that period and those investors that were looking further forward understood that the UK was the best place to be if they wanted to be in Europe."

Dunedin has already invested 20% of its new vehicle, having acquired Trustmarque Solutions in June last year and Kee Safety in December.

Dunedin has £400m under management and counts more than 20 institutional investors across Europe. The firm's investment trust is backed by 2,500 institutional and individual shareholders. Dunedin has 16 investment professionals in offices in Edinburgh and London.

Visitor Comments


Add your comment

We won't publish your address
By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication.


Industry news

CVC's Backman named CEO of Finnish Industry Investment

Backman replaces Juha Marjosola, who takes senior adviser role

Nordic unquote

| 29 Aug 2014 | secure

BGF appoints north-UK talent network manager

BGF appoints north-UK talent network manager

Victoria Robson, Business Growth fund

UK unquote

| 29 Aug 2014 | secure

DHB sale to face regulatory scrutiny

Strategic buyers are preferred by regulators according to credit agency Fitch

DACH unquote

| 28 Aug 2014 | secure

Ropes & Gray appoints Travers Smith's Sanderson

Mid-market M&A specialist joins as partner in London office


| 27 Aug 2014 | secure

Updating your subscription status Loading


Victoria Robson of BGF

Victoria Robson, Business Growth fund

More people news

Steve Cockell of RBS

Steve Cockell, RBS

RBS has named Steve Cockell as head of London origination

More people news

Sarah Ledwidge of Business Growth Fund

Business Growth Fund (BGF) has appointed Sarah Ledwidge as investment manager in its Bristol Office

More people news

Sam Archer of Downing

Downing has appointed Sam Archer as investment director in its unquoted investment team.

More people news

Oliver Felsenstein of Clifford Chance

Oliver Felsenstein, Clifford Chance

Clifford Chance has promoted Oliver Felsenstein to head of corporate advisory in the company’s German office

More people news



unquote British Private Equity Awards

Date: 02 Oct 2014
Location: London, UK

unquote" DACH Private Equity Forum

Date: 07 Oct 2014
Location: Munich, Germany

unquote" Italia Private Equity Forum

Date: 12 Nov 2014
Location: Milan, Italy

Forum unquote” Italia sul Private Equity

Date: 12 Nov 2014
Location: Milan, Italy

Chartis Report: Operational Risk Management Systems for Financial Services 2013

This report covers the specific technologies required for firms to improve their ORM processes.


The optimization of everything: OTC derivatives, counterparty credit risk and funding

The global financial crisis has created much excitement over counterparty credit risk (CCR) and, in recognition of this, banks have been improving their practices around CCR.

Email Alerts