Dunedin pays £80m for stake in wealth management consultants Alpha

The company was sold by mid-market rival Baird, which had bought a majority stake in Alpha for £28m in 2013.

Dunedin said it expects full-year profits at Alpha to reach £8m, up from £2.3m in 2013.

Alpha advises 130 global asset managers including building infrastructure for star fund manager Neil Woodford’s firm, Woodford Investment Management.

Dunedin, which backs CitySprint, one of the UK’s biggest courier firms, typically invests up to £100m in industry and business services sectors, having sold off its consumer brands in the mid-2000s.

Its previous investments include Jessops and Millets, but the firm’s focus has shifted from the high street to the consultancy space over the years.

Private equity firms typically hold investments for an average four to six years before they look to cash in on their investments.

Mark Ligertwood, a partner at Dunedin, said he expects demand for outsourced consulting firms to grow.

“It fits very well with Dunedin’s focus on growing businesses through successful internationalisation and we are delighted to be backing the team on the next part of their journey,” he said.