Duke Street

Investing in growth across the U.K. and Europe

High quality mechanical and electrical engineering solutions across Europe

Duke Street

Investing in growth across the U.K. and Europe

A leading medical imaging solutions provider

Duke Street

Investing in growth across the U.K. and Europe

Producer and distributor of gardening products

Duke Street

Investing in growth across the U.K. and Europe

Manufacturer and distributor of generic pharmaceuticals

Duke Street

Investing in growth across the U.K. and Europe

World’s leading provider of escorted rail holidays

Duke Street

Investing in growth across the U.K. and Europe

Premium river cruise operator

Duke Street

Investing in growth across the U.K. and Europe

Plant hire business

Duke Street

Investing in growth across the U.K. and Europe

The UK’s largest indoor go-karting operator

We invest in Western European mid-market companies

At Duke Street, we have been investing in mature, mid-market Western European businesses for over twenty five years. Our investment strategy is concentrated on four sectors: Consumer, Healthcare, Industrials & Engineering and Services. Typically we invest in companies with an enterprise value of between €50m - €350m. Our strategy is based on our ability to identify unique opportunities and add value to each business we acquire. We aim to transform the prospects of the companies that we invest in.

Origination beyond the obvious

We focus our efforts on transactions developed on an exclusive basis. We actively seek complex deals which other investors may avoid if we think they have underlying growth potential.

Value creation

Our mission is to accelerate the growth of the companies that we buy. We help our companies grow both organically and through acquisition.

Supportive Structure

We have developed a robust approach to building relationships between ourselves, the CEOs of our portfolio businesses and our Operating Partners.

Sector focus

We believe sector knowledge is critical, which is why we have dedicated teams focusing on our four core sectors. This, alongside the deep industry experience of our Operating Partners, has allowed us to create a proven track record of successfully building companies.

We invest in companies with strong brands serving consumers across multiple channels

We have extensive experience in the consumer sector: in restaurants with wagamama, in the gaming sector through our investment in companies such as Gala Bingo, Sporting Index and Leisure Link. In leisure, we have invested successfully in both niche hotel operators and fitness and leisure businesses. Two of our investments in particular – SandpiperCI and The Original Factory Shop – display our willingness to back retail management teams with ambitious growth plans, even at a time when the sector as a whole was experiencing tough trading.

We also have a wealth of experience of working with management teams in consumer branded products. At Simple, we backed an ambitious growth plan for the business to become the UK’s leading skin care provider by volume, overtaking companies such as Nivea and L’Oreal in the process.

See our Portfolio for a more in-depth analysis of these and further Consumer investments.

Duke Street is a long-term investor in the healthcare space, making our first investment in 1997

Since then we have deployed c. €700m in the sector, backing great management teams to deliver transformational business plans.

We believe the sector to be structurally attractive: it is defensive and benefits from significant barriers to entry due to the complexity of the products and services involved.

We also believe that it lends itself well to our investment strategy. Europe is home to a large number of strong management teams, and high value-added businesses which deliver outstanding patient outcomes. Such businesses typically offer multiple routes to value creation. Even the most mature sub-sectors remain fragmented and so there is significant potential for buy and build.

Please see our Portfolio for a more in-depth analysis of our past and present Healthcare investments.

We cover a broad range of Industrials sub-sectors with a particular focus on aerospace & defence, engineering, manufacturing & security

We look to invest in companies with differentiated product or process IP, operating in attractive end-markets, with scope to affect operational transformation through inter alia, a build-up in specific niches, technological changes, or product / geographic diversification.

We back management teams with a clear strategic vision as well as a strong operational focus; and our in-depth understanding of the sector means we are well-placed to work in partnership with such teams.

Our investments in this sector include Deloro Stellite, the specialist engineering group, and filtration solutions provider Madison Filter. See our Portfolio for a more in-depth analysis of these and further investments.

We invest in services businesses with the potential for operational improvement and rapid growth

The services sector encompasses a wide range of sub-sectors, each subject to its own dynamics but often with outsourcing as a key driver. We identify macro trends that will drive above average market growth, and then back businesses providing value added skills and products to their customers in those markets. We are particularly attracted where there is the potential for operational improvement as well as organic growth. We partner with best-in-class management teams providing support, capital and expertise where this is required and materially adds value.

We have considerable experience in the sector, complemented by a large network of industry contacts. Investments we have made in this sector include Ardent Hire Solutions, a heavy equipment hire business, Payzone, a consumer payments business, and the specialist pensions group Xafinity. See our Portfolio for a more in-depth analysis of these and further Services investments.

Responsible Investing

ESG Considerations

At Duke Street we consider environmental, social and governance (ESG) issues throughout the investment decision-making process and life-cycle. We believe that robust and well-implemented ESG policies and practices contribute directly to the long-term success and sustainability of our portfolio companies. Implemented effectively, they help us to protect and enhance reputation and financial performance whilst creating stronger, more valuable companies which can create benefits for all stakeholders: from employees to customers, suppliers to shareholders, and the wider community at large.

We review our approach to ESG regularly to ensure that it continues to reflect best practice.

 

Initiative Climat International

As part of our commitment to actively address climate risks, Duke Street is a signatory to the Initiative Climate International (iCI), a global private equity initiative focused on cross-sector collaboration to develop pragmatic solutions to address climate change and, in particular, reduce carbon emissions of portfolio companies. iCI is endorsed by the UN-sponsored Principles for Responsible Investment (PRI).

Environmental

As responsible investors we aim to minimise our environmental impact by ensuring efficient resource use in energy, water usage, recycling and reductions in greenhouse gas emissions.

Governance

We take our role as fiduciary guardian of our investors’ capital seriously and believe that strong corporate governance is essential to the financial integrity and success of our firm. Our investment committee oversees all investment decisions and we have put in place practices to ensure that we and our portfolio companies comply with all relevant corporate governance policies and procedures.

Social

We aim to maintain a positive working environment both at Duke Street and portfolio company level by promoting diversity and inclusion and ensuring compliance with all employment legislation.

Sustainability

With careful consideration to all environmental, public health, safety and social issues we build better, more sustainable brands which benefit both Duke Street investors and the wider community in which our businesses operate.

Find out how Duke Street portfolio companies make responsible investing a reality.

Our Portfolio

Mr Music

SECTOR: Consumer

Education and Entertainment Nordic AB (EEN), leading Scandinavian distributor of educational and entertainment content

We look to invest in businesses where the current owners have neither the inclination nor the vision to invest in its growth and development into new markets. With EEN we worked closely with the new management team to realise new opportunities in online and mail-order retailing.

Investing in market leadership

EEN, formerly Mr Music, is Scandinavia’s largest mail-order distributor of music compilation CDs. Based in Gothenburg, the company creates its own compilations and sends them to the members of its various clubs every month.

We acquired EEN from its private owner in December 1999, together with our Swedish co-investment partner AB Segulah, committing funds to consolidate the company’s leading position in existing markets and expanding its operations.

Different from the rest

EEN’s products had a distinct advantage over albums released by its competitors. As they were sent out monthly, customers received their albums while the singles featured on the CDs were still in the charts. Other compilation albums were released only two to three times a year and contained tracks that are no longer current.

Mr Music had over 160,000 active members throughout Scandinavia and estimated that 70% of the region’s core 15-25 age group had at some time been members of one of its clubs. But for some time EEN’s owner had been running the company for its cashflow and was reluctant to provide capital for expansion, particularly to exploit the obvious opportunities presented by online retailing.

More than just capital

While we sourced the transaction and led the sometimes delicate negotiations, AB Segulah provided invaluable advice throughout. This included the recruitment of new management team members, investigating the commercial opportunities for the company in the Scandinavian market, and helping the vendor to create the most tax-efficient way of exiting from the business.

From the start, we provided much more than just capital. We worked closely with the management team, asking them what they wanted to do with the business and helping them formulate a business plan.

With the funds we made available for expansion, the company launched a number of clubs, including audio books and DVDs. In particular, it launched a new mail-order club called Kids University. This club offered educational games on CD Rom which teach English, Maths and History to children aged between three and 13 years. The club was targeted at over three million mothers in Sweden.

Exit

In December 2004, EEN was sold to a group of Swedish business angels.

Our Team

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Investors

The Duke Street investor base comprises traditional funds and pools of committed capital alongside co-investment mandates from high quality investors, which include Fund of Funds, Pension Funds, Insurance Companies and Family Offices amongst others. Our investors are long-term supporters of the Duke Street investment model and are located across the globe with substantial support from North America and Europe.

Duke Street has invested over €3bn in more than 50 companies over the last 25+ years and has achieved strong returns in excess of 25% IRR throughout the cycle. Duke Street is an independent sponsor and itself invests substantially in each deal, ensuring maximum alignment between Duke Street, its investors and management teams.

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Contact

Duke Street

Nations House,
103 Wigmore Street,
London W1U 1QS

Tel: +44 (0)20 7663 8500
Fax: +44 (0)20 7663 8501

Email us

mail@dukestreet.com

You can use the email address above, or write to us for additional security. Enquiries will of course be treated in strictest confidence from time of receipt but we cannot guarantee the security of email (or other) communications with us.