The company’s large team of more than 60 experienced economists provides award-winning macroeconomic, financial market and sectoral analysis, forecasts and consultancy, from offices in London, New York, Toronto, Sydney and Singapore. Capital Economics provides research subscriptions, data and events covering 27 services.
In October 2014, LDC supported the growth of Capital Economics with a minority investment. The transaction enabled Capital Economics to widen ownership of the shares amongst its staff and to strengthen the management team.
Since then, the business has grown revenues by 30% to over £22.5m in its latest financial year through the launch of new services and new offices in New York and Sydney. It has also expanded the team by 30% to over 140 employees across its five locations.
In March 2018 LDC exited its investment in Capital Economics in a sale to Phoenix Equity Partners (‘Phoenix’), which has acquired a controlling stake in the business. Phoenix’s investment, which values the business at circa £95m, will be made alongside the existing management team and shareholders. Roger Bootle will retain a significant stake in the business. The transaction provided a return for LDC of 2.5x money and an IRR of 43%.
In April 2018, LDC completed a minority reinvestment in Capital Economics alongside Phoenix. This will allow LDC to continue to support the management team on the next stage of the company’s growth journey.
LDC have professionalised things. We've brought in someone from outside - Bob Dowson (CEO), who manages much of the business day-to-day. We've introduced a new CRM system, we've moved buildings, we've opened two new overseas offices, we've introduced new products, we've rejigged the sales process, I could go on and on. Maybe we would have done a lot of this anyway, but it wouldn't have come naturally to us.Roger Bootle, Chairman, Capital Economics