Strategic Partnership Supports DunPort's Growth
Strategic Partnership Supports DunPort's Ongoing Fundraising and Growth Across Continental Europe
DunPort Capital Management, a prominent player in the realm of private credit, is set to strengthen its market position through a new partnership with Vertis Capital Partners, an alternative investment firm based in the UK. This collaboration allows Vertis to make an initial minority investment in DunPort, with plans for further increases as the partnership develops. DunPort will continue to be led by its Executive Directors, Pat Walsh and Ross Morrow, ensuring continuity in leadership.
The partnership is designed to bolster DunPort's capacity as a key lender to lower mid-market enterprises across Europe. Since its establishment in 2017, DunPort has successfully allocated over €1.3 billion to 68 borrowers focusing on its primary markets.
Expanding Investment Opportunities
This collaboration arrives at a time when DunPort is working to raise funds for Willow Corporate Credit DAC, its fourth private credit fund, with a target of up to €1 billion to enhance its lending framework in select European locations. Earlier, DunPort secured a €200 million cornerstone investment from existing investors for the Willow initiative and is actively pursuing further fundraising efforts tailored to its lower mid-market credit strategy.
Through this strategic alliance, DunPort plans to work collaboratively with Vertis, along with its affiliate, Henry Costa Partners, a specialized merchant bank, to expedite institutional fundraising. The goal here is to attract capital from insurance companies and other long-term investors directly into the real economy.
Key Board Appointments
The strategic partnership also introduces significant expertise to DunPort's governance. Dermot Browne, the former CEO of Aviva Ireland, is joining as an Independent Non-Executive Director on DunPort's Board. Additionally, Ralf Ackermann, a co-founder of Vertis, will participate in DunPort's Investment Committee. Henrik Matsen, the founder of Henry Costa Partners, is also coming aboard, joining DunPort's Board of Directors alongside Chairman David O'Flanagan, and current Non-Executive Directors Iain Burnett and Eugenee Mulhern.
Ralf Ackermann expressed his enthusiastic view on the deal, highlighting that DunPort has created an impressive business model centered around thorough credit selection that prioritizes downside protection. This investment represents Vertis' commitment to supporting high-quality platforms throughout Europe, providing substantial institutional support and structural acumen.
Goals for the Future
Pat Walsh, DunPort's Executive Director, welcomed the partnership as a pivotal moment for the firm. He emphasized that the blend of Vertis' broad institutional relationships and Henry Costa’s expertise in structuring will prove essential as DunPort looks to enhance its platform and expand its operational territory. With the addition of Dermot and Henrik to the board, DunPort's governance is further solidified, paving the way for future growth.
Ross Morrow, another Executive Director at DunPort, spoke about the strategic partnership positioning DunPort well to hasten its developmental pace across vital European markets, including the Benelux, DACH, and Nordic regions. He noted the capacity to serve clients in Ireland and the UK while aiming for larger, more intricate deals in the lower mid-market sector, without compromising their disciplined investment principles that have been vital for their success.
The precise financial terms of the investment have not been made public, as both parties signal their enthusiasm about the venture.
Ashcombe Advisers LLP and McCann FitzGerald LLP served as financial and legal advisors to DunPort, while William Fry LLP provided legal counsel to Vertis.
About Vertis Capital Partners
Vertis Capital Partners, headquartered in London, specializes in alternative investments, focusing on private credit and asset-backed finance across the UK and Europe. With a leadership team comprised of former executives from Apollo and Searchlight, Vertis is committed to building and scaling premier credit platforms while prioritizing downside protection.
About DunPort Capital Management
DunPort Capital Management is based in Dublin and serves as a private credit manager offering flexible financing options to lower mid-market companies throughout Europe. Since its inception in 2017, DunPort has effectively deployed around €1.3 billion, showcasing its robust capabilities in underwriting and portfolio management.
About Henry Costa Partners
Henry Costa Partners operates as an independent merchant bank catering to insurers, banks, and investment managers, concentrating on two primary sectors: Advice & Principal Investments and Capital Markets. They maintain a principle of deep alignment of interests, investing their own capital along with clients. The firm is driven by a culture of humility, trust, and a commitment to long-term collaboration.
Frequently Asked Questions
What is the significance of the partnership between Vertis and DunPort?
The partnership aims to enhance DunPort's fundraising capabilities and market presence in the private credit sector across Europe, leveraging Vertis' expertise.
How much has DunPort deployed since its establishment?
DunPort has deployed over €1.3 billion to 68 borrowers since its inception in 2017, focusing on lower mid-market companies.
Who are the new appointees to DunPort's Board?
Dermot Browne, Ralf Ackermann, and Henrik Matsen are the new appointees, bringing significant experience to the Board.
What funding is DunPort currently seeking?
DunPort is actively fundraising for its fourth private credit fund, Willow Corporate Credit DAC, aiming to raise up to €1 billion.
What expertise does Henry Costa Partners bring to the partnership?
Henry Costa Partners contributes specialized knowledge in structuring and fundraising, focusing on channeling capital into the real economy.
