Duke Street Capital has sold Sporting Index to HgCapital for £75.8m in a secondary buyout transaction. This represents a return of 2.6 times the original investment and an IRR of 40% for Duke Street Capital.
Duke Street Capital backed the management of Sporting Index in December 2002 in a £53m transaction led by Richard Glynn.
With Duke Street Capital’s backing, Sporting Index has launched a number of new products including BetHiLo, a lower-risk product aimed at beginners, and a unique range of spread-betting games. Distribution channels have also been widened, providing customers with new ways to place their bets. Customers can now bet by phone, Internet and Sky television. Gamblers are able to place sports spread bets 24 hours a day.
Peter Taylor, chief executive of Duke Street Capital, said: “Since we invested in Sporting Index we have worked actively to support an outstanding management team in its development of the business through the introduction of new products and distribution channels. Richard Glynn and his team deserve great credit for transforming Sporting Index over the past three years. This sale marks Duke Street’s seventh successful exit in 2 years, providing excellent cash returns to our investors.”