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Our criteria - investment criteria


LDC has a specific market focus and expertise.


We concentrate our efforts on supporting medium-sized UK companies in deals that range in value from £5million to £250million. In most cases, we invest from £2million to £100million of equity.

In short, our investment criteria is:

  • The company's turnover should be at least £5million.
  • Profits before tax and interest should generally exceed £1million.
  • There should be at least a two-year profit history.
  • Above all, the management team needs to be ambitious and capable.
  • And we only invest in MBOs, IBOs or Development Capital (replacement, acquisition, expansion) transactions.

The main types of transaction type are listed below:

Management buy-outs
This is where we provide the management team with the necessary resources to buy the business from the current owner.

Institutional buy-outs
This is where the private equity company buys the company and then provides the incumbent and/or incoming management with a stake in the business.

Development capital
If a business requires finance for growth we can provide funds by investing equity in the business.

Replacement capital
This funding enables a shareholder to realise some or all of their shareholding.

Acquisition funding
We provide the equity needed for one business to acquire another.

Pre-flotation funding
In the run-up to a stock market flotation we buy equity to diversify the shareholder base.

If you like further information contact a member of the LDC team.

Mail Link: jcaswell@ldc.co.uk

Link to: Investment team