Dunedin to acquire Sand Aire Private Equity

Guy
01 September 2005

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Dunedin Capital Partners, the UK mid-market private equity house, is in advanced and exclusive discussions to acquire Sand Aire Private Equity for an undisclosed amount from Sand Aire Investment Management Ltd, the family wealth management company.

The acquisition of one private equity house by another is extremely rare although consolidation in the private equity industry has been expected for some time. Following the acquisition, Dunedin's funds under management will rise to £300m, with £100m available for investment in UK buyouts.

Sand Aire is selling its private equity business to concentrate solely on the multi-client family office market where it has become one of the leading London based firms in this field since its formation in 1996. Sand Aire believes that the unfettered ability to select asset classes, investment managers and products from around the globe is increasingly important in the family office sector. Consequently its private equity business, the only direct investing business in the group, will develop better under different ownership. Sand Aire Private Equity has established a strong position as a specialist in the owner-managed and family companies market over recent years and has excellent prospects.

The Sand Aire Private Equity team will join Dunedin on completion and will form the core of its expanded London presence. Dunedin already sources more than 50% of its dealflow from London and the South East and this acquisition allows it to devote more resource to this key market.

Sand Aire Private Equity was founded in 1997 and has become a successful investor with a strongly differentiated offering in its market. Investing between £2m and £10m per transaction, it has funded management buyouts, buy-ins and through its "Equity Harvest" product, it has provided innovative and tailored capital solutions to shareholder issues in owner-managed and family businesses, such as succession management.

Dunedin is an independent private equity manager owned by its directors and staff. It is focused on mid-market buyouts with a transaction size of £10m to £50m. It invests in the following sectors; construction and building materials, consumer products and services, financial services, healthcare, leisure, specialist manufacturing and support services.