There are a range of funding options available for businesses, and it’s important management teams explore a variety of routes to understand which one is the best fit for their firm.
Bank debt is the go-to option for many businesses, who opt for a loan to fund business growth. Banks also offer a range of products which allow a business to borrow money against the value of its assets or bridge payment gaps to help manage working capital more effectively.
While debt funding can facilitate short to mid-term growth plans, equity funding is a more effective option to build long-lasting value. Releasing shares in a business for equity investors means that as well as securing a capital injection, the incoming party has a vested interest and is committed to driving its growth.
Private equity investment comes in various forms, depending on the structure and objectives of your business. Growth can be funded through a management buyout, whereby management teams take the helm of a business from its existing owners with the support of private equity investors, and together they work in partnership to fund and execute a growth plan.
Similarly, private equity backers can also provide development capital which can help existing management teams to grow their business quickly and effectively.
Seeking funding is part and parcel of a growth journey. Private equity often invests in businesses that have already been private equity backed, as part of a secondary buyout, and can work hand-in-hand with other private equity houses to scale a business.
LDC invests in a diverse range of businesses in different and often complex situations. Typically, the cheque sizes range from £5million to £100million; covering both initial and follow-on investments meaning we continue to support your growth after the deal is signed.