UK private equity firm Duke Street Capital is reportedly looking for investors to buy out its existing fund LPs in an attempt to lay the groundwork for resurrecting last year’s cancelled fundraise.
The firm scrapped plans to raise an £850m fund in February 2012 after experiencing low levels of demand from investors, instead deciding to focus on ‘sidecar’ vehicles of up to €100m for one or two deals at a time, a source with knowledge of the situation told AltAssets at the time.
But it has now hired advisory firm Hawkpoint to evaluate its assets with the view to allowing LPs to exit their commitments on the secondaries market, the FT said,
It cited three people with knowledge of the fundraise, who highlighted the obvious targets of Coller Capital, Pantheon and HarbourVest as potential bidders for the stakes.
Duke Street abandoned a fundraise begun in the summer of 2011 after failing to hit a €250m first close at the beginning of last year.
Since then it has been forced to write off €85m of equity in IT services portfolio company 2e2 after the business plunged into administration with the loss of more than 600 jobs.
It had more success last year with the €277m exit of engineering group Deloro Stellite, which netted it a 2.4 times return.
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