LDC has announced plans to increase its investment in the UK’s mid-sized companies.
The firm, whose 90-strong portfolio includes lifestyle brand Joules and restaurant owner D&D London, has pledged £1.2billion of capital over the next three years to help accelerate growth amongst Britain’s so-called Mittelstandt.
Over the last three years, LDC invested £930million in more than 50 businesses, as well as providing follow-on capital to support their acquisitions in the UK and overseas. Since it was founded in 1981, it has backed over 425 firms, including household names like global haircare brand ghd and Fever Tree, the maker of premium tonic water and mixers.
Mid-sized businesses currently represent just 0.5% of all businesses in the UK but contribute around one fifth of employment and turnover. Only 17% generate revenues outside of the EU, much lower than similar sized western economies.
LDC said its plans were designed to help more management teams access the capital, strategic guidance and operational support needed to achieve scale both domestically and internationally, and become the global businesses of the next decade.
Chris Hurley, Joint Chief Executive of LDC, said: “Mid-sized businesses are vital to the UK economy, and our core aim is we want to help them grow more quickly. Private equity investment is a powerful catalyst. Not only does it provide the capital to fund investment, it brings the market-leading strategic and operational expertise of our teams and non-executive network to help management teams overcome the barriers to growth and unlock the business’ potential. This takes hard work and partnership, but over the last 30 years, we’ve been able to prove that time and time again, supporting management teams to create the jobs, wealth and exports we need to help the UK to prosper.”
The firm said it expected its investment to be balanced across the UK regions and core sectors.
Chris Hurley added: “There are thriving regional economies right across the UK and hundreds of companies with the potential to be world-class. We’re determined to play a part in accelerating growth for those companies with the ambition to become true market-leaders.”
LDC, which is the most active mid-market private equity investor (by deal volume), invests up to £100million in UK based companies, supporting management buyouts and development capital deals. It operates a network of eight regional offices in Aberdeen, Birmingham, Bristol, Leeds, London, Manchester, Nottingham and Reading, and invests across a range of sectors, including manufacturing and industrials, retail & consumer goods, healthcare, technology, media & telecoms, travel & leisure and support services.