In Conversation with: LDC

For the benefit of our readers, can you tell us a little bit about LDC?

LDC is the UK’s leading mid-market private equity house. We have almost 40 years’ experience backing more than 600 of the nation’s most ambitious business leaders, helping them to grow bigger and better businesses.

We typically invest between £10m and £50m in every transaction and are committed to investing £1.2bn in UK mid-market businesses over the next three years.

How are LDC different to other PE firms?

LDC is the private equity arm of Lloyds Banking Group. We back existing management teams to grow their businesses with the support of our capital and expertise. Having Lloyds Banking Group as our sole funder allows us to be more flexible with management teams and the timelines we work towards, meaning we can back business through every stage of the economic cycle.

We also have a UK-wide network of offices so we can work closely with local management teams and advisers.

For company owners who are not ready to retire or walk away from the business, can you tell us a bit about 'growth through acquisition' and your thoughts on this?

Buy and build is an attractive route to growth for businesses looking to build scale quickly, no matter the economic backdrop. When supported by an experienced private equity partner like LDC, it can effectively increase a firm’s market share, introduce new products and services or further consolidate a market to create an industry leader.

Since July 2018, LDC-backed businesses across the UK have acquired more than 45 companies with a total enterprise value of over £275million and more than one-third of our portfolio are currently on a buy and build strategy. With £100m available to each company we invest in, we provide follow-on funding to help management teams to make strategic business acquisitions happen. Our broader team can also provide extra support with integration.

What sectors or regions do you target?

As the private equity arm of Lloyds Banking Group, through our nationwide network of offices LDC is focused on supporting businesses in almost every sector in every region across the UK. We currently have a portfolio of 90 businesses across the UK across a broad range of sectors.

How has the current climate impacted you and are you currently investing?

Whilst transaction activity was slower in the second quarter, there are clear signs that the M&A market is rebounding with far more discussion and activity. Despite the many challenges posed by the pandemic, the fact remains there are businesses out there with robust and realistic growth strategies looking for partners who are able to support their longer-term ambitions as they navigate through the current climate. We remain committed to supporting these businesses and plan to invest £1.2bn over the next three years to help business leaders realise their growth plans.

We completed 18 deals in the first half of 2020. The majority completed since the onset of the pandemic, and our pipeline for the second half of the year building quickly.

End of interview.

If you would like to know more about how private equity investment may benefit your company, speak to the La Salle team on 0161 975 1521 or use our Contact Form here.