UK mid market private equity firm Dunedin has closed its third fund on its £300m hard cap, ahead of its initial £250m target.
Dunedin said it had “significantly” diversified and expanded its investor reach since closing its second fund on £250m in June 2006.
Some 60 per cent of the LPs that have committed to Dunedin Buyout Fund III reside outside the UK, compared with 20 per cent in 2006, it said.
Investors from the Nordics and the USA invested in Dunedin for the first time, with increased interest from France, Switzerland and Germany, the firm said.
Dunedin’s third fund also saw increased commitments from pension funds, insurance companies, sovereign wealth funds, and foundations.
The firm made its last investment from the £250m Dunedin Buyout Fund II in December 2012, with the £34.5m management buyout of oil and gas manufacturer, Premier Hytemp.
It completed the first investment from its third fund in June of this year through the £43m buyout of technology solutions provider, Trustmarque Solutions.
In the last year, it has also completed three exits in the industrial and business services sectors, including bridging manufacturer WFEL, IT services provider Capula and conference and venues business etc. venues, achieving a threefold return.
Mark Ligertwood, the Dunedin partner who led the fundraising, said, “The successful closing of our third fund at the hard cap of £300m represents a key milestone for Dunedin.
“We worked diligently as a team to raise this new fund in an extremely challenging market, firmly beating our target of £250m.
“With our new fund in place, we are now actively looking to invest in UK headquartered business with a market leading position in their niche, and already have a full pipeline of interesting opportunities to explore.”
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