• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • Investments

Deal in Focus: Dunedin reaps 55% IRR from Alpha IPO

Wealth managers and financial advisers
Divestment of wealth management consultancy came ahead of schedule, generating an £89.6m return
  • Kenny Wastell
  • Kenny Wastell
  • @kennywastell
  • 11 October 2017
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

The £163m flotation of Dunedin-backed Alpha Financial Markets came earlier than the GP had originally planned and resulted in a 55% IRR. Kenny Wastell delves into the listing of the asset and wealth management consultancy

Dunedin-backed asset and wealth management consultancy Alpha Financial Markets Consulting has floated on the London stock exchange with a market cap of £163m.

The flotation consists of 22 million new and 56.4 million existing shares valued at a combined £125.4m. It raised an additional £35.2m for the company, which intends to use the fresh capital to pay down all its existing debt facilities and to pay for fees associated with the placing.

The listing marks a full exit for Dunedin, which generated £89.6m from the transaction just 20 months after it acquired the company in a secondary buyout, equivalent to an IRR of 55%.

"It was not our original plan to look for an early IPO," says Dunedin partner Mark Ligertwood. "We were looking at a more traditional three- to four-year holding and all exit options were on the table. But the reasons for floating the company early were almost entirely internal. We had implemented the key changes: consolidating our position in the US, opening an office in Singapore and developing the European market a little further by opening an office in Geneva."

Most of the presentations the team conducted to the fund management community were to people with whom they had worked in the past or were likely to work with in the future" – Mark Ligertwood, Dunedin

Founded in 2003 and headquartered in London, Alpha provides consultancy services to asset and wealth managers, as well as their third-party administrators. Baird was the first institutional fund manager to invest in the business, purchasing a minority stake in October 2013 in a deal valuing the business at £28m, according to unquote" data. Dunedin then acquired Alpha from Baird in February 2016, in a deal worth £80m. The GP drew capital from its third buyout fund, which held a final close on £300m in June 2013, in order to support the transaction, while debt was supplied by Lloyds Bank Commercial Banking and Beechbrook Capital.

Alpha has primarily expanded via an organic international growth strategy over the last six years, with increasing market demand for its blend of consultancy and benchmarking data in response to regulatory changes and cost pressures. Under Dunedin's 20-month tenure it opened offices in Edinburgh and Boston, in addition to the aforementioned operations in Geneva and Singapore. These new offices added to its existing locations in London, Paris, New York, The Hague and Luxembourg. The business also acquired Germany-based software company Track 2, with which the company had previously worked.

The company's turnover increased from £6.7m in the year ending March 2011 to £43.6m in the year ending March 2017, with adjusted EBITDA growing from £2.16m in 2012 to £8.55m in its most recent financial year.

Ahead of time
"Once we had implemented the strategy we started to consider exit options," says Ligertwood. "The reason an IPO became a compelling option was largely to do with the nature of the business, which supplies back-office services to the largest fund managers around the world. Most of the presentations the team conducted to the fund management community were to people with whom they had worked in the past or people they were likely to work with in the future."

Ligertwood adds that another key element behind pursuing a listing instead of a trade sale was Alpha's culture and "fiercely independent" history. "They originally set themselves up as a contrasting offering to larger consultancy firms," he says. "A match could perhaps have been found with a potential trade buyer, but securing the correct cultural fit would have been challenging. The other obvious option would have been another private equity transaction, but it was decided that a flotation provided the best exit route in terms of maintaining that culture."

Grant Thornton and Berenberg advised Alpha in connection with the listing.

People
Dunedin – Mark Ligertwood, Oliver Bevan (partners); Andrew Davidson (assistant director).
Alpha Financial Markets Consulting – Euan Fraser (CEO).

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Investments
  • UK / Ireland
  • Financials
  • Deal in focus
  • IPO
  • Dunedin
  • United Kingdom

More on Investments

EMEA Public to Private M&A
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • Investments
  • 04 September 2023
Jan Cerny of BHM Group
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • Investments
  • 01 September 2023
Reima Linnanvirta of Trind VC
Trind VC plans up to five early-stage investments in next six months

VC has deployed around 10% of its second, EUR 55m fund and plans to invest in up to 40 startups

  • Venture
  • 31 August 2023
Guillaume Fournier of Credo Ventures
Credo Ventures sees activity uptick, plans further deals in 2023 with EUR 75m fourth fund

Czech VC firm's latest vehicle is around 50% deployed and expects to make 25-30 deals in total

  • Venture
  • 23 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013