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Octopus sells stake in TDX Group

Octopus Investments has sold the majority of its 6.3 per cent holding in TDX Group, a provider of analytics-based consumer debt management services, for approximately GDP2.6m.

Octopus Investments has sold the majority of its 6.3 per cent holding in TDX Group, a provider of analytics-based consumer debt management services, for approximately GDP2.6m.

This represents a total return of 9.7x for investors in the Octopus Eclipse VCT. 
 
The sale forms part of a larger transaction in which Investcorp Technology Partners, the technology private equity arm of alternative investment manager Investcorp, has purchased a 40 per cent equity holding in TDX Group for approximately GDP28m.

Octopus will continue to hold a minority stake in TDX.
 
Established in 2004, TDX Group assists its clients in maximising the value of arrears debt portfolios through analytics and data driven asset sales, recoveries management and financial difficulties service platforms. 

In the UK, TDX Group sells over 40 per cent of all defaulted unsecured consumer debt and, by the end of 2008, the company’s recoveries management platform will manage approximately five million accounts.   
 
Chris Allner, head of Octopus Private Equity, says: ‘In TDX Group and its high calibre management team, we identified a business with strong growth potential and a unique offering capable of providing a differentiated service in its target markets. Since then, the business has become the market leading provider of consumer debt management services in the UK and we are delighted that investors in our Eclipse VCT are now reaping substantial rewards from this investment.’
 
The announcement represents the exit of the first investment made by Octopus Eclipse VCT and is the sixth exit across all the Octopus Eclipse VCTs.

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