Dunedin backed Alpha Financial Markets (“Alpha”), the leading global provider of specialist consultancy services to the asset and wealth management industry, today announced the admission of its ordinary shares to trading on the AIM market of the London Stock Exchange.
The company has raised £125.4 million at a placing price of 160p per share, resulting in a market capitalisation of £163 million on admission.
The admission has enabled UK private equity firm Dunedin to fully exit the business, generating a strong return for its investors after just nineteen months and an IRR of 55%.
Dunedin acquired Alpha in February 2016 and the company has seen strong growth in revenues over the 18 months which has enabled an exit via IPO. During Dunedin’s ownership period, Alpha has grown organically and through acquisition, and has increased its international footprint.
The flotation of Alpha secures another strong return for Dunedin Buyout Fund III, which closed at its hard cap of £300m in July 2013 and since then has completed seven investments, three exits (including the sale of Blackrock Expert Services in August 2017) and fifteen portfolio acquisitions. It also underscores Dunedin’s track record in the professional services sector with current investments in Kingsbridge and Forensic Risk Alliance.
Headquartered in London and servicing over 200 clients, Alpha employs over 250 consultants and contractors across nine major cities including Edinburgh, New York, Boston, Paris, Geneva, The Hague, Luxembourg and Singapore.
Mark Ligertwood, partner of Dunedin commented: “Alpha’s successful IPO and the positive response that it has received from investors is testament to the strength and quality of the business and its management team. We had a clear and ambitious growth plan for the Company at the time we invested and have worked in partnership with Euan and the rest of the team over the last nineteen months to deliver on this. We are really pleased to have been part of the Alpha story. We wish the team at Alpha continued success in public ownership.”
He added: “Dunedin has a clear focus on growing and internationalising UK headquartered businesses that are leaders in their niche. While investing our third fund, we have had particular success in the professional services sector and we look forward to building on this experience with existing portfolio companies and future investments.”
Euan Fraser, Chief Executive Officer of Alpha, said: “We are delighted to be beginning our new life as a public company on AIM. We believe that being a public company will best suit our ongoing commercial objectives, as we look to capitalise on the many high-growth opportunities that exist across geographies and markets in the rapidly evolving asset and wealth management industry.
“I would like to thank Dunedin for their investment and guidance as well as welcoming our new investors. I look forward to keeping our new shareholders and the wider market updated as we continue to implement our exciting strategy.”
Berenberg acted as sole Global Coordinator and broker for the transaction and Grant Thornton UK LLP as Nominated Adviser.