About Dunedin Enterprise Investment Trust PLC
Dunedin Enterprise Investment Trust PLC specialises in the provision of equity finance for management buyouts, management buyins and growing businesses.
The Trust's primary objective is to achieve substantial long-term growth in its assets through capital gains from its investments.
History
Dunedin Enterprise Investment Trust was established in 1974 and listed on the London Stock Exchange in 1987. Its investment objective has remained constant over the period.
Investment Strategy
Dunedin Enterprise principally invests in UK lower mid-market management buyouts with an enterprise value of £20m to £75m.
The strategy is to target buyout investments where the opportunity exists to partner with management teams to build better businesses. Companies with the following characteristics are targeted: proven management team with the desire to create and deliver value; strong market position, niche or brand; clear organic growth potential; potential for buy and build or roll-out; barriers to entry; or legislation-driven products or services.
The Company's investment policy was amended following a General Meeting held in November 2011. The portfolio will now be progressively refocused on UK lower mid-market buyouts where the Company has invested directly or through funds managed by its investment manager, Dunedin Capital Partners.
The Company's legacy third party managed fund investments may be held to maturity, although the Directors will consider earlier sales of all or any of those investments, together with any associated undrawn commitments, if the Directors believe that any such sales on the terms proposed are in the best interests of Shareholders as a whole.
Distribution policy
A distribution policy has been introduced, whereby at least 50% of the capital gains made on realisations of the Company's investments in UK lower mid market buyouts and a substantial proportion of the net proceeds from any sales of the Company's existing investments in third party managed funds will be used to fund Share buy-backs, tender offers, returns of capital, dividend payments or other distributions to Shareholders.
This distribution policy should reduce the cash drag on Shareholders' returns following realisations and pending re-investment, and create liquidity for Shareholders whilst maintaining the Company at a viable size. The cancellation of the share premium account, which will facilitate the implementation of the distribution policy, remains subject to Court approval.
These changes should bring about a more efficient employment of the Company's capital.
The Manager
The Trust is managed by Dunedin Capital Partners Limited, an independent private equity fund manager. The Manager's senior team has been together since 1996 when they completed their own buyout. Dunedin has more than £500 million under management. This is managed on behalf of the investment trust and three limited partnership funds. The investment trust is backed by over 5,000 institutional and individual shareholders and the limited partnership funds by 20 institutional investors from the UK, Europe and the US.
Dunedin targets buyouts investments where it can partner with management teams to build better businesses. Dunedin provides the knowledge, skills and finance to help the companies it backs to develop and attain their full potential. Dunedin Capital Partners Limited is authorised and regulated by the Financial Services Authority.
