Dunedin Enterprise Investment Trust has committed a total of GBP60m to Dunedin’s latest buyout fund, Dunedin Buyout Fund III.
The fund has closed at GBP300m, exceeding its target of GBP250m. It is dedicated to investing in UK SME businesses with an enterprise value of between GBP20m and GBP75m.
Its predecessor fund, Dunedin Buyout Fund II, performed strongly over seven years, with returns of 2.6 times realised for investors.
In December 2012, the trust announced a commitment of GBP50m and this additional GBP10m brings the trust’s commitment to 20 per cent of the fund at final close.
This comes at a time when access to finance in the UK for growing businesses is still limited. Dunedin helps UK businesses to grow their international operations, broaden their market and take advantage of export opportunities.
David Gamble, chairman of Dunedin Enterprise, says: “Dunedin Enterprise is one of a limited number of ways that investors can access investment opportunities in UK SME businesses with high growth potential. It is well positioned to deploy funds into new investments through Dunedin managed funds and we are expecting good buying opportunities in the medium term.”
Shaun Middleton, managing partner of Dunedin, the manager of Dunedin Enterprise, says: “We provide investors with access to high quality UK SMEs and their growth potential; and the fact that our fund exceeded its target of GBP250m, is an endorsement both of the strength of opportunity available in the UK, and of the hands on approach that Dunedin takes to creating stronger, more profitable enterprises.”
In the last year, Dunedin has helped two UK businesses to achieve greater scale and operational efficiency, ultimately attracting the attention of international trade buyers. In 2012, IT services provider Capula was sold to Dutch quoted company Imtech; and mobile tactical military bridging manufacturer WFEL was sold to KMW, a German land defence systems provider.
