1 I celebrate myself, and sing myself, And what I assume you shall assume, For every atom belonging to me as good belongs to you. I loafe and invite my soul. So we decided to restructure the fund and we received overwhelming support with 8. LP group. Lazard was hired to run a process before the summer of 2. September there were a handful of potential buyers willing to provide cash. Goldman Sachs offered the highest price as well as tabling new money to fund future deals as a cornerstone investor up to 5. GPs equity ticket, says Almond. Spanish investment group Arcano also took part in the process and agreed to work alongside the lead bidder at the syndication phase. For those rolling over, we wanted to keep the terms the same, so no different to what they would have been if we had extended the life of the fund, says Almond. Super Street Fighter 4 Pc Skidrow Update 3. And for those cashing out, we wanted to maximise the price it was at a price that was a premium to the NAV of the fund. Duke Street says it is adopting a hybrid model for the next phase of its investment journey, moving away from its deal by deal approach, since they now also have cornerstone funds at their disposal. For a new deal, the GP contribution will be 3 5, the cornerstone fund contributing 5. French investment bank Tikehau acquired a 3. Duke Street business in 2. Almond. Challenge or opportunity. A few years ago, the GP moved away from fund based investing to a deal by deal approach. It wasnt all smooth sailing, especially since the model wasnt as common here in Europe as it is in the US, but we have proved ourselves now with five deals under our belt, which have a combined EV of 7. Almond. The market has been evolving and some LPs who said they couldnt invest with a fundless sponsor only 1. We have a club of circa 2. LPs who co invest in our deals, several of them have been repeat investors. Our most recent deals have been heavily oversubscribed. Now GS and Arcano have given us further support with the new cornerstone fund, we have plenty of fire power. Indeed, the co investment market in general is more established now, and most GPs admit there is increasing appetite for it. Not only is there money to deploy since returns have been so good, LPs are getting savvier about reducing fees. When asked whether Duke Street will ever fundraise again, Almond concedes it would never say never. However, it is keen to give the hybrid model a chance to succeed, especially given the apparent advantages of flexibility and deal by deal carried interest. The 1. I think well start seeing some different and more flexible models on the periphery, says Almond. Duke Street typically calls on three to five co investors for each deal and the LPs range from family offices such as Souter Investments to blue chip institutions like Deutsche Bank, Alberta Teachers and Allstate Insurance. Same but different. The GPs focus on four sectors services, healthcare, consumer and industrials remains unchanged. It continues to look at companies with an EV of 5. Voyage Care was a chunky 3. Duke Street will typically contribute a 6. We dont often go into auctions as the companies we like to invest in can sometimes need quite a bit of operational or strategic change and may not appeal to everyone or suit a process, Almond says, citing the acquisitions of Ardent and Mediglobe where there were messy shareholder structures to buy out. With this in mind, the hope is for an investment rate of up to three deals a year. And in terms of tapping the debt markets for financing, Duke Street is fairly open to the range of options. It used mezzanine for Laurel Funerals ABL for Ardent bonds for Voyage and Wagamama and a group of local German banks for Mediglobal. Deal by deal track record. Since adopting the deal by deal approach four years ago, Duke Street has acquired five companies and exited two. Laurel Funerals was acquired in 2. Dignity and August Equitybacked FSP in 2. Baywater Healthcare was acquired in 2. Irish division then sold to Air Liquide in 2. The GP also acquired Voyage Care in 2. Ardent out of the acquisitions of Fork Rent and One Call in 2. German medical equipment maker Medi. Globe in 2. 01. 6. Longer term returns are understood to be more than 2x with an IRR approaching 3. Key People Peter Taylor, managing partner, joined Duke Street in 1. Bridgepoint. He is a specialist in the consumer sector. Charlie Troup, managing partner, joined Duke Street in 2. Permira and HSBC Private Equity now Montagu on secondment from Deloitte and Touche. Stuart Mc. Minnies, managing partner, joined Duke Street in 2. His main sector expertise is in business services. James Almond, partner, joined Duke Street in 2. Octopus Investments and is responsible for fundraising, running the co investment programme and investor relations.