LDC invests £450m across ‘Length and Breadth of Britain’ in 2024

New investments included Hull-based built environment software provider Pagabo, Mansfield-based performance doorset manufacturer IDSL and Dublin-based healthcare equipment provider Medray. The firm also invested in Deltron Group, the Dudley-based lift maintenance and repair specialist, Waterscan, an  ESG-focused water management consultancy and 15below, the Brighton-based travel industry software developer.

LDC, which operates from 10 locations across the UK, also helped its existing portfolio companies to make 49 acquisitions as they expanded in the UK and internationally. This included five acquisitions for Deltron Group in the first three months of its partnership with LDC, alongside acquisitions for creative and technology group MSQ, managed service and cyber security provider Aspire Technology Solutions, fine food distributor Bramble and national lettings and estate agency group Lomond Group.

Over the same period, the firm completed 12 exits following successful partnerships where the exited businesses grew revenues by an average of 263% and created more than 3,380 jobs. These transactions generated £670m of exit proceeds and an average money multiple return of 2.5x.

Highlights included LDC’s exit and reinvestments in Lomond Group, which generated a 3.5x money multiple return, cloud and digital services provider Kerv, which generated an IRR of 45%, and IGG, a provider of professional pensions trusteeship and governance services, which grew revenues and headcount by more than 300%. LDC is now continuing to support the growth of all three companies.

Full exits included Nottingham-based software provider ENSEK to Centrica, London-based digital marketing company Croud following three-fold growth, education specialist The Edwin Group after a successful three-and-a-half-year partnership and Manchester-based biscuit manufacturer Hill Biscuits which doubled revenues during the partnership.

LDC, which benefits from committed and flexible funding as part of Lloyds Banking Group, said it plans to continue its investment activity in the year ahead, underlining its appetite and ability to invest throughout the cycle.

Toby Rougier, Chief Executive Officer of LDC, said: “Businesses faced both political and economic uncertainties last year, which created challenging trading conditions for many. Despite this, we continued to back new management teams in every UK region and helped our portfolio companies to grow.

“I’m proud of our teams across the country for their hard work and commitment during 2024, and of the management teams we support for their continued ambition and resilience.

LDC continued to invest in its people during 2024. This included 15 new hires, seven promotions and continued investment in training and development. New hires included Nicol Fraser as Managing Partner and Head of London, Kevin O’Loughlin as Investment Director in the East Midlands, Vera Kuehne as Investment Manager and Sally Tam as Investment Executive in the South West and Wales, alongside the opening of a new office in Bristol.

The company also expanded its five-year relationship with The King’s Trust, announcing the UK-wide roll-out of Business Advance, a new programme designed to help young entrepreneurs from all walks of life to sustain and grow their businesses. So far, its multi-million-pound partnership with the youth charity has helped more than 4,400 young people to start and grow their own business. The firm also reached a milestone with its charitable giving programme, surpassing the £2m fundraising mark through its annual charity quiz.