News
LDC delivers record year of investment
5 Jan 2023
LDC, the private equity arm of Lloyds Banking Group, deployed more than £384m in new investments alone in 2022, a record for the firm. It also provided a further £38m of follow-on funding to support the growth of its existing portfolio, taking the total invested to £422m, up from £400m in 2021. This step up in investment was supported by LDC’s focus on growing its own team.
In 2022, LDC invested in 16 new companies, including Sussex-based IT managed services provider Acora; global pharmaceutical development organisation TMC Pharma Services and Bedfordshire-based Stonbury, a leading supplier of sustainable water engineering services. The private equity firm has now invested more than £1.2bn in growing businesses since 2020.
Last year LDC also provided follow-on funding to existing portfolio companies to complete 44 acquisitions, helping them to scale and diversify. This included independent marketing and technology group MSQ’s acquisition of Miri Growth and leading digital transformation firm Kerv’s acquisition of the Communications Compliance Practice business of TDS Global Holdings.
LDC celebrated a number of strong exits in 2022, including Leamington Spa-based Solid Solutions, a market-leading reseller of 3D design software, following a series of acquisitions; Bristol-based TV production company Plimsoll, which grew revenues from £35m to £50m ahead of joining ITV Studios; and Kent-based bathroom specialist Aqualisa, which expanded internationally and developed sustainable products during a seven-year partnership.
Despite the continued political and economic uncertainty of the last 12 months, I’m proud that we were able to deliver much-needed capital and support to 16 new management teams with big ambitions for growth, as well those across our existing portfolio."
Evidencing the firm’s ability to add value to growing businesses, LDC’s 10 exits in 2022 generated an average money multiple of 2.6x. And despite the challenges of the last three years, on average portfolio companies LDC exited increased revenues by 79% and headcount by 54% during their partnership with the private equity firm.
LDC, which operates from 10 regional locations, is committed to delivering its target of backing 100 medium-sized businesses across the UK over the next five years. To support with this, the firm has recruited almost 30 new employees in 2022, 60% of which are diverse.
LDC Chief Executive Toby Rougier said that LDC’s unique combination of regional presence and multi-sector experience placed it at the heart of the UK economy and, with the support of Lloyds Banking Group, in the best position to help medium-sized businesses to grow.
He commented: “Despite the continued political and economic uncertainty of the last 12 months, I’m proud that we were able to deliver much-needed capital and support to 16 new management teams with big ambitions for growth, as well those across our existing portfolio.
“We have also invested in our own people, growing our team and through training and development. In addition, we expanded our ESG capabilities to ensure we can positively influence the environmental, social, as well as economic contributions of more growing businesses across the UK.
“Looking ahead, our regional network and industry experience mean we’re in the towns, cities and sectors that will drive the UK economy. We are ready and able to provide the backing businesses need to scale in a sustainable and equitable way.”
During 2022, LDC has been focused on its ESG commitments to support a more sustainable and equitable future. This includes the extension of the firm’s partnership with The Prince’s Trust to become its leading corporate supporter of young entrepreneurs, as well as raising £300,000 for worthwhile local causes.
LDC'S 2022 YEAR IN REVIEW
In 2022 we delivered a record level of new investment.
