LDC targets West Midlands businesses

Last year, the firm deployed £365 million of capital to back 18 ambitious management teams across the UK.

LDC, part of Lloyds Banking Group, said the role of private equity in supporting the UK’s small and medium-sized businesses was ‘more important than ever’. The firm said the plan formed part of its rolling three-year nationwide commitment to invest £1.2 billion of capital, with the West Midlands remaining a strategic focus for the investor.

In an annual summary of its performance, the firm – which typically invests between £5m and £100m in a single transaction – said every one of its seven UK regional teams invested last year, demonstrating the strength of the firm’s regional network.

Investments led by LDC’s team in the West Midlands included B2B car finance broker Evolution Funding; leading international business communications consultancy, Instinctif Partners; and precision engineering specialist ELE Advanced Technologies.

In addition, the firm continued to support the growth of West Midlands firms in its portfolio, including Europe’s market-leading photochemical etching company, Precision Micro, and fleet management service provider SMH Fleet Solutions.

For exits, LDC worked closely with management teams throughout 2019 to drive value despite tougher market conditions. Its Midlands team reached an agreement to sell fast-growing holiday park operator Away Resorts to Bregal Freshstream after supporting the expansion of the business during a four-year partnership, which saw revenues increase to £63million and headcount grow from 450 to 950. LDC retained a minority shareholding as part of the deal and continues to support its growth ambitions.

Richard Whitwell, head of LDC in the Midlands, said: "The West Midlands is home to high-quality management teams so it’s no surprise it continues to be a great place to do business. It is why we have invested over £300million to support the growth plans of West Midlands firms in the last five years.

"We continue to be confident about the future of firms in the region and, by using a sizable chunk of our national commitment to invest £1.2billion over the next three years, we firmly believe we can continue to make a tangible difference to the growth of West Midlands businesses."

Martin Draper, chief executive of LDC, said: "We see growth prospects across all corners of the UK, and our market-leading regional presence means we’re on the ground, prepared to deploy more of our capital and unique expertise to help management teams capitalise on what is set to be a year of opportunity."

LDC’s Midlands team has backed 140 management teams with more than £1billion since 1987.

The firm’s commitment to backing ambition extends beyond the mid-market. In 2019, LDC partnered with The Prince’s Trust to help young people across the West Midlands explore and launch their own business through start-up grants, volunteering and mentoring.