Every company is unique. Each has its own challenges to face, opportunities to grasp and goals to achieve. If we appreciate the true diversity of the business community and its management teams, then we should also acknowledge the need for a tailored approach to investment.
All too often private equity is pigeon-holed as a pure-play management buyout tool that requires a majority equity stake from shareholders. While investments with this structure are common and have their place, our offering can be far more flexible.
Lloyds Banking Group is our sole funder, which ensures patience, stability and certainty on capital deployed. It also means that we can structure investments in a way that best suits the needs of business leaders.
Take Capital Economics – one of the leading independent macro-economic research companies in the world. We worked with Roger and his team to shape a £70million deal to ensure that the expanded management team retained a majority shareholding and control of the business.
The funding has since helped the business press ahead with the development of new products and increase in its capacity. But, that is only half of the story.
Private equity investment can also pave the way for a step-change in a company’s growth journey – and not just through further acquisitions. For instance, our work with Capital Economics has focused on supporting its expansion into new overseas markets, including the launch of its offices in New York and Sydney.
Of course, whatever the strategy of a business, it is clear that private equity can be a powerful driver for growth. Critically, however, it is the ability to adapt to the needs of a management team and shape an investment plan accordingly that adds real value.
At the heart of that partnership is a deep understanding of a company and its market, but also a shared ambition to create value and build a better, stronger and scalable business.