LDC South West and Wales team completes three transactions in six months

The South West and Wales team of the UK’s leading mid-market private equity firm LDC has completed three transactions in the first half of 2021, with a combined enterprise value of more than £280million.

Dewi Hughes, Head of LDC in the South West and Wales, highlighted that the unique strength of the local business community will create significant growth and investment opportunities for small and mid-sized companies over the coming year.

Last month the management team of Bristol-headquartered digital media company Hybrid chose to partner with LDC to support its acquisitive growth strategy. The business helps higher education institutions all over the world to create differentiated brands and campaigns. LDC has invested £13million to support the future growth of the business.

In March, LDC led an investment in Sohonet, a leading international provider of connectivity and software for the media and entertainment industry. LDC’s partnership is supporting the existing management team to further build on its international growth strategy and explore complementary acquisitions.

LDC also exited its investment in Gloucester-headquartered ADEY in February. The private equity firm backed the water treatment specialist in 2016 to support its domestic and international expansion. By the end of the four-and-a-half-year partnership, ADEY had expanded into 19 European countries, as well as China, the United States, Australia and New Zealand.

The transactions follow a challenging period for businesses everywhere in which LDC has worked closely with portfolio company management teams to provide the necessary support to help strengthen and position their businesses for growth. Since the start of the pandemic, across its 12 regional locations, the private equity firm has provided more than £100million in follow-on funding nationally to strengthen its 90-strong portfolio of mid-market UK businesses.

In the past six months, LDC has supported its portfolio companies to expand across the South West and Wales including WCCTV, a Queen’s award-winning mobile surveillance business, which opened a new office in Newport. In April, Zip World launched Zip World Tower, a new site in South Wales which is the company’s fourth adventure destination. LDC also supported Away Resorts to acquire Cornish resort St Ives Bay Holiday Park in March.

LDC has also continued its support of important local causes through its national partnership with The Prince’s Trust and its sponsorship of and participation in Break the Cycle 2021. Break the Cycle is Bristol Sport Foundation and Bristol Bears Community Foundation’s largest annual fundraiser. It encourages people to cycle and raise money for these organisations which help to motivate people through sporting activities. The initiative this year raised more than £30,000.

Dewi Hughes, Head of LDC in the South West and Wales, commented: “Over the past six months we’ve seen the confidence businesses across the South West and Wales increase as we emerge from the pandemic. While the entire business community has faced challenges, I’m incredibly impressed by how quickly management teams across the region have adapted and are now pushing for growth again, and we’re ready to support them.”