STV Strathdon Inv

RNS Number:9429G
Strathdon Investment PLC
31 July 2006





                           Strathdon Investments plc


                     Formation of fund management business

Strathdon Investments plc ("Strathdon" or the "Company"), the technology
investment company, today announces that it has formed a new Limited Partnership
fund with a major investor and that the first transactions have been completed.
Strathdon's subsidiary, Strathdon Finance Limited, will manage the specialist
secondaries venture capital fund to be called Strathdon Secondaries LP ("the
Fund"). The principal investor is a fund of funds with over Euro1bn under
management. The initial size of the Fund will be #6m with the ability to
increase the commitment up to #20m.

The first transaction completed by Strathdon Secondaries LP is the acquisition
of 3i's interest in Pancredit Limited, an established supplier of consumer
finance software and lending systems. Its customers include EDS and GE Capital.
In addition to acquiring a shareholding in Pancredit, the Fund has also acquired
Strathdon's interest in the Esprit Capital 1 Fund (formerly the Cazenove New
Europe Access Fund) for cash at Net Asset Value of #1.0m.

The establishment of a third party fund management business has been a key
strategic objective of Strathdon.

Andrew Firth, Chairman of Strathdon, commented:
"I am very pleased that Strathdon has formed this new fund. It is the first step
in building a venture fund management business that can generate material income
from both fees and carried interest.  The increased scale will improve our cost
effectiveness and give Strathdon a more powerful presence in the venture
market."
Hugh Stewart, Chief Executive of Strathdon, said:

"We are excited about this opportunity. We believe there is potential to build a
sizeable and profitable business in secondary purchases of direct venture
investments. It is a specialised area requiring technical expertise and access
to a broad range of contacts and information sources. The sale of the stake in
the Esprit fund, a non-core holding for Strathdon, generates cash for further
investment in the Strathdon portfolio."




- Ends -

For further information:

Strathdon Investments plc                   +44 1962 870 492
Hugh Stewart, CEO                           (hugh.stewart@strathdon.com)
David Hudson, Investment Director           (david.Hudson@strathdon.com)

Merlin (PR advisers to Strathdon)           +44 2076 536620
Vanessa Maydon 07802 961 902                (vmaydon@merlinpr.com)
Rebecca Penney 07795 108 178                (rpenney@merlinpr.com)

Notes to editors

Strathdon Investments Plc

   * Strathdon Investments plc, the AIM-listed technology investment company,
    was formed following the merger of Strathdon Investments Limited's unquoted
    technology portfolio with INVESCO's quoted techMARK Enterprise Trust in June
    2004. (Symbol: STV)


   * Strathdon's strategy is to invest in young technology businesses,
    primarily unquoted companies in the UK.


   * The portfolio is focused on businesses that are applying information
    technology to areas in which members of the Strathdon team have deep
    experience, generally through having built up businesses in those markets.
    These include systems for the energy, finance, healthcare and process
    control sectors.


   * Strathdon's objective is to create long-term returns from venture
    capital investing through a balance of investment in established and
    early-stage companies.


   * Strathdon's fund management subsidiary, Strathdon Finance Limited, is
    authorised by the FSA.


   * Strathdon was established in 1997 and is headquartered in Winchester.
    The company has offices in England, Scotland and the US.


   * For further information: www.strathdon.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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