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Goldman Sachs to back Duke Street Funds with €100m

21 Aug 2013

euros4_lrgInvestment bank Goldman Sachs has reportedly agreed to invest €100m in funds managed by UK private equity firm Duke Street Capital.

Goldman Sachs Asset Management will invest in Duke’s planned fund as part of a wider deal to buy out investors in its previous vehicle, said Bloomberg, citing three people with knowledge of the talks.

Two months ago Duke Street agreed to sell a 35 per cent stake in the firm to French investment group Tikehau, with a view to launching a new £150m fund.

In February 2012 Duke Street abandoned fundraising efforts for its seventh investment vehicle after experiencing a low level of demand from investors.

It launched the fund in mid-2011, but cancelled the fundraise after failing to hit its €250m first close.

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.

A source told AltAssets at the time that the firm could concentrate instead on sidecar vehicles for one or two deals at a time, after experiencing low levels of LP demand for the larger fund. The firm has made two deals through this strategy with a third in “advanced stages of exclusivity”.

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