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PRINT THIS PAGE Duke Street sells Sporting Index to HgCapital for £76m18/10/2005. Source: AltAssets. 
 UK-based buy-out firm Duke Street Capital has sold Sporting Index to HgCapital for a consideration of £75.8m. This represents a return of 2.6 times the original investment and an IRR of 40 per cent, according to Duke Street.
Management will continue to manage the business going forward and will retain a meaningful stake in the company.
Duke Street backed the management of Sporting Index, led by Richard Glynn, in a £53m buy-out in December 2002. Under Duke Street's ownership, Sporting Index has launched a number of new products including BetHiLo, a lower-risk product aimed at beginners, and a range of spread betting games. Distribution channels have also been widened, providing customers with new ways to place their bets: by phone, internet and Sky television. Gamblers are able to place sports spread bets 24/7.
Peter Taylor, chief executive of Duke Street Capital, said, 'Since we invested in Sporting Index we have worked actively to support an outstanding management team in its development of the business through the introduction of new products and distribution channels. Richard Glynn and his team deserve great credit for transforming Sporting Index over the past three years. This sale marks Duke Street's seventh successful exit in two years, providing excellent cash returns to our investors.'
Ben Hewetson, director and head of leisure investments at HgCapital, added, 'Over the past three years, Sporting Index's management team has built a market leading
business which they have developed significantly, most notably in terms of distribution and product development. Over 70 per cent of all bets are now placed via the internet and the company continues to develop its distribution channels to meet changing customer needs, as evidenced by the recent developments of its Sky TV and mobile telephone channels.'
Duke Street focuses on mid-market leveraged buy-outs, investing in established UK and French businesses with enterprise values of up to €300m.
HgCapital is a sector-focused private equity investor, which specialises in mid-market investments ranging from €40-400m.
Copyright © 2005 AltAssets
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