THE PRIVATE equity house behind Japanese restaurant chain Wagamama and payments network Payzone has pulled a €850m (£706.5m) fundraising as global market turmoil shows little sign of easing.
Duke Street now wants to raise cash for every one or two deals it carries out, although it is set to receive payments to cover operational costs as well as a performance incentive.
It shelved its seventh fund in what management regard as a “practical” move given the amount of time needed to travel to negotiate with global investors. Duke Street has invested 90 per cent of its sixth fund, which was worth €963m.
The move underlines the problems facing mid-market firms as investors sit on their cash despite a slight improvement in market stability.
Private equity firms raised $263bn in 2011, slightly less than they gathered in 2010, according to data firm Preqin, and a far cry from the height of the buyouts boom, when they pulled in around $600bn a year.
Duke Street, which is focussed on Britain and France, may return to the market with a traditional fundraising but has not set a date.
The firm has previously held stakes in Gala Bingo and DIY chain Focus. It bought Wagamama from Lion Capital in a £215m deal last year.
Nobody from Duke Street was available for interview yesterday.
