What is development capital?
Development capital – also known as growth capital or business growth funding – is a capital injection into your business to support further expansion. With this type of private equity deal, LDC often partners with business founders or leaders to invest for a minority shareholding, backing you and your team to deliver future growth with confidence.
How to choose a development capital partner?
When selecting a development capital investment partner, it’s important to choose one that can provide you with the necessary funding and expertise. LDC has an impressive track record when it comes to providing businesses with capital injections and has worked across a range of sectors, including technology, consumer and healthcare.
We can provide the funding and advice your business needs to achieve growth with confidence, perhaps you wish to enter new markets, finance a significant acquisition or expand current operations.
What does LDC look for in a successful development capital investment?
When it comes to investing in businesses with development capital, LDC takes into account a number of different factors.
Firstly, we check whether the business has a consistent track record of delivering growth. This assures us that the business and its management team can deliver on future growth, if supported by a capital investment.
Profitability, stable cashflow and strong sales also assure us that a business is in good health. Companies that are able to demonstrate these through figures and accounts generally make for a compelling investment.
Perhaps most essential is a strong set of forecasts that show us where the business will aim to grow in the future. The management team should be able to confidently look ahead and make calculated plans based on past performance, also considering any potential roadblocks. It’s also important to have an awareness of the level of partnership and support you will require alongside the capital investment from LDC.