How can private equity drive business growth?

Private equity is a catalyst for business growth and is centred on establishing and executing opportunities which will help build long and lasting value for a firm.

Prior to an investment, private equity partners will spend time getting to know a business and how it operates to establish an investment structure which works for both parties. On signing the deal, investors work in collaboration with management teams to map out and execute their growth ambitions.

Each company’s opportunities are different and investors shape their approach accordingly. Whether it’s about making acquisitions, launching new products, building new manufacturing facilities, breaking into new sectors or expanding overseas, investors will take a long-term view.

The initial investment is just the start of a partnership. Private equity partners can deploy follow-on funding to back further expansion, whether that’s capital to finance a bolt-on acquisition or the purchase of a new facility. With £100m available to invest into each portfolio company, LDC often deploys follow-on funding to support further expansion.

LDC also has a dedicated team of in-house operational experts who specialise in driving growth. The Value Enhancement team helps management teams to build a solid foundation for growth and ultimately, a stronger and better business. The team works hand-in-hand with management to identify projects that help to improve profits, maximise sales, drive efficiencies and deliver effective cash management.