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Dunedin Capital Partners, the UK mid-market private equity house, has exited from Davenham Group Holdings and Portman Holdings, creating multiples of 4.3 times and 3.6 times respectively on initial investments.

Manchester-based Davenham is an independent asset based lender. It provides lending solutions designed to meet the financing needs of UK SMEs – typically involving loans of between £10,000 and £3 million.

Dunedin backed the £60 million MBO of Davenham in 2000 and provided a second round of finance in 2001 to fund further growth.

At the time of the MBO, Dunedin says it acquired a solid business that was poised for growth and further supported this by strengthening the board and arranging additional funding.

Dunedin also ensured that management succession issues were addressed which permitted the company to float on AIM in 2005. Dunedin realised part of its shareholding on float and has now sold its remaining stake in the business. Dunedin’s investment has returned a money multiple of 4.3 times and an initial return on investment (IRR) of 32 per cent.

Portman is a UK-based business travel agency. Dunedin supported the £22 million MBO of Portman from Motherwell Bridge in 1996, which was led by Nat West Ventures (now Bridgepoint). The business has now been sold as a secondary management buy–out to Vision Capital, a secondary private equity investor. Dunedin has achieved a money multiple of 3.6 times and an IRR of 16 per cent.

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