Mid-market investment firm LDC has committed to supporting the growth ambitions of management teams across the South West. The firm, which marks its 40th anniversary in 2021, said the private equity industry had a “unique opportunity” to accelerate the UK’s economic recovery in the coming decade.
Speaking as LDC provided an annual summary of its performance, its newly appointed chief executive, Toby Rougier, said that supporting the growth ambitions of the UK’s small and mid-sized companies “in every corner of the UK” would remain its “primary purpose”.
Rougier, who joined as chief executive earlier this month, also re-affirmed LDC’s commitment to invest £1.2bn of equity over the next three years. He added that he expected to increase annual investment levels in 2021 as more SMEs looked to return to growth and larger corporates looked to divest subsidiaries to strengthen balance sheets.
The firm, part of Lloyds Banking Group, invested more than £240m in 14 new investments last year, despite a market-wide slow-down in UK private equity investment due to the Coronavirus pandemic and resulting economic uncertainty.
It also worked with portfolio businesses to help them grow through ‘buy and build’ strategies, providing follow-on capital to support 35 bolt-on acquisitions, and continued to source strategic buyers for some of its portfolio.
Working in partnership with portfolio management teams, last year the firm generated £875m in proceeds, with an average money multiple of 3.6x and IRR of 57 per cent.
Dewi Hughes, head of LDC in the South West and Wales, added: “2020 has been a year like no other, with unique challenges faced by us all. But despite this period of uncertainty, the ambition and resilience of the region’s businesses shone through as many adapted their offering or pivoted their proposition with impressive agility. This is testament to the quality of management teams across the South West and Wales.
“Despite uncertainty continuing into 2021 for many businesses, the year ahead presents a number of opportunities for those looking to scale and diversify, and we’re committed to supporting management teams across the South West and Wales with the capital and experience to help realise their growth ambitions.”
Source: Insider Media
