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Date:
Annual Review 2010
I am pleased to enclose our annual review of the year ended March 2010.
The market events of 2009 tested private equity firms as never before. I’m pleased to say that in our 2009/10 year Duke Street’s operational model performed strongly, with 12 of our 13 portfolio companies maintaining or growing value from the previous year.
Having stabilised the portfolio in the first half of 2009, we launched four exits mid-year, ahead of the curve. We were confident of success, but surprised even ourselves by signing four exits in four weeks at the turn of the year – Affinity Healthcare, Groupe Proclif, Simple and Xafinity – three of them at two times cost or better.
As a result, we returned nearly €300m to our Duke Street V fund. To put this into context, Duke Street has realised €3.6 billion in 31 deals in France and the UK at an average IRR of 31% and 2.0x multiple since 1994 – delivering consistently high performance at any stage of the cycle.
We have changed our focus in 2010 to new acquisition activity. In addition to recent investments in Payzone and Marlin, we expect to close a further three major investments in 2010. We are not complacent, but still confident that good times lie ahead for those who are well prepared.
Peter Taylor
Managing Partner, Duke Street
View the annual review here.