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Shackleton Ventures acquires further secondary portfolio from 3i

Shackleton Ventures, a secondaries venture capital firm, has announced that its Shackleton Secondaries LP fund has purchased a further portfolio of nine companies from 3i Group for an undi

Shackleton Ventures, a secondaries venture capital firm, has announced that its Shackleton Secondaries LP fund has purchased a further portfolio of nine companies from 3i Group for an undisclosed amount, the second purchase of assets from 3i in three months following the acquisition of four investments in February.

The companies acquired by the fund primarily operate in information technology, communications and healthcare. The largest portfolio company is Creditcall Communications, which specialises in the processing of credit and debit card payments, focusing on card payments at unattended machines such as parking, ticketing, vending and kiosks, card payments over the internet and payments software such as chip and PIN and magnetic stripe.

Shackleton specialises in direct secondary venture capital investments, where it buys a portfolio of existing investments, or an individual asset, from an investor that is seeking liquidity. Its strategy includes potentially providing further investment to enable the companies to grow faster ahead of a profitable exit, or restructuring the investment to improve incentives for the management of the portfolio companies.

Last November Shackleton acquired the secondaries business formerly owned by AIM-quoted Strathdon Investments, comprising the general partner and manager of the Strathdon Secondaries LP fund. The fund, which was established in July 2006 and has been renamed Shackleton Secondaries, can draw on investment of up to GBP20m and is backed principally by a leading European-based fund of funds investor with more than EUR1bn under management.

The fund now has a portfolio of 16 investments focused on IT, communications and healthcare. Other portfolio companies include Data Encryption Systems, a leading producer of software and data protection devices sold through distributors and manufacturers; Global Computer Holdings, a provider of specialist inventory management facilities worldwide for IT hardware manufacturers, maintainers, resellers and outsourcing companies; and Episys Group, a provider of signage and labelling systems and services for healthcare, industrial and retail customers.

Says Shackleton managing partner Hugh Stewart: ‘We are acquiring a portfolio of companies from 3i which we believe can achieve significant profitable growth. In particular, CreditCall is a first-rate company. I have no doubt that the strong management team will continue to deliver increasing success with a good range of products in a developing arena. It is another significant purchase for Shackleton as we continue our assault on the secondaries market.’

Shackleton’s management team has significant experience in the technology sector, combining many years in the venture capital business with senior management positions in growth technology-based companies.

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