Private equity is a powerful tool for growth. The provision of capital, combined with strategic and operational support, is critical to building stronger businesses and increasing shareholder value.
A recent study into the social value of private equity showed LDC portfolio companies grew three times faster than the national average for all SMEs, with aggregate employment in our portfolio companies increasing by 27% and turnover by 20% during our stewardship.
Here we look at the significant growth of three of our portfolio companies in the South; Equiom, EDM Group and BOFA International.
LDC has supported Sheila Dean and the management team of Equiom, the leading provider of fiduciary and administration services, since 2013. Over a three year period LDC has invested over £22million in nine strategic acquisitions, most recently Dubai-based Links Group and Asia-based Heritage Trust Group.
Sheila Dean, Global CEO of Equiom, said: “Our latest acquisitions expand Equiom’s jurisdictional reach into the new areas of Singapore and BVI while expanding our current team in Hong Kong – for Equiom clients this provides further access to international services and expertise.”
Equiom’s revenue has grown fourfold since our investment, and it is fast becoming the stand-out business in the fiduciary services sector, with offices in many of the world’s premier international finance centres.
International information management specialist EDM Group has completed seven strategic acquisitions, both in the UK and internationally, since LDC’s original investment in 2011.
The business extended its global footprint with the launch of EDM in North America, with its rapid international expansion seeing the business top the Sunday Times HSBC International Track 200 in 2016.
Sam Ferguson, Global CEO of EDM, said: “It was a natural decision to go to America, where the business style is very similar to the UK. We acquired a business over there and it’s done very well for us. The American market is much larger than the UK’s, and we now generate half our revenue from over there.”
The EDM Group has seen its annual turnover grow ninefold since LDC’s original investment in 2011.
In August 2015, LDC completed the management buyout of BOFA International, the global market leader in Fume Extraction Technology to help support its continued growth and development, including expansion into new markets and further investment in product development.
Since the investment, LDC’s Value Enhancement Group has worked closely with the business to help drive its performance and support its research and development.
Tony Lockwood, Chief Executive of BOFA said: “Having achieved consistent growth in recent years, we’re well positioned to capitalise on future growth opportunities. The financial backing and strategic input that LDC’s investment brings will have a great impact in helping us to facilitate these ambitions.”