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Shackleton acquires Sigma VC fund assets

The UK-based direct secondaries firm has opened an Edinburgh office to manage the 10 assets it has acquired.

Shackleton Ventures has taken over the management of three Sigma Capital Group funds using its ‘Shackleton Secondaries 3′, a fund raised specifically for the deal. The size of the fund and transaction were not disclosed.

The funds include the Sigma Technology Venture Fund (STVF), the Sigma Innovation Fund (SIF) and the Sustainable Energy Fund and together have 10 underlying portfolio companies across the IT, food technology and energy sectors.

“[The transaction] gives a fresh start to the investee businesses, giving them sufficient time and resources to achieve exit and will provide the investors with a route to liquidity,” Shackleton managing partner Hugh Stewart said in a statement.

The portfolio companies, which are all based in Scotland, include internet video specialist Exterity, aviation software developer AviIT and engineering software company DEM Solutions.

Shackleton has opened a new office in Edinburgh to support the portfolio companies, according to the statement.

Publicly listed Sigma previously said it planned to withdraw from managing venture capital funds and would retain an LP stake after transferring the funds’ assets to Shackleton.

The STVF raised £17 million ($28 million, €21 million) in 2012 with limited partner contributions from the Bank of Scotland and the Scottish Widows Investment Partnership, while the SIF raised £6 million in 2008, according to data from private equity and venture capital database PSEPS.

Shackleton Secondaries II closed on £25 million in 2008. The fund acquired 13 investments from 3i Group, including mobile payments business Macalla which Shackleton sold nearly one year later, Private Equity International previously reported.

Shackleton manages four funds and specialises in direct secondary venture capital investments. Founded in 2006, Shackleton is led by Stewart and two partners, Steve Burton and Deborah Hudson, according to its website.