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Welcome to Southern View – An update from LDC in the South

4 Dec 2020

Welcome to Southern View – an overview of LDC’s activity across the region and information about the role we’re playing in supporting the ambitions of management teams of local mid-market businesses.

LDC has been backing the ambitions of mid-market management
teams across the South of England for more than 20 years. Our
experience has taught us that a private equity partnership can add significant value to a business during uncertain times, which is why our appetite to invest remains as strong as it was when we first set up our office in Reading all those years ago.

To date, we have invested more than £500million to help over 60 local management teams operating in a diverse range of sectors to realise their growth strategies. And we are also playing an increasing role in supporting the region’s thriving hub of technology businesses as they look to expand quickly. Our current portfolio includes innovative and high growth business like CIPHR and Amberjack.

As the pandemic began and business plans across the country were being disrupted, management teams were quickly reassessing their route forward. Private equity can offer
business leaders the support to help navigate the challenges ahead and continue to grow. We have continued to work closely with management teams in the region, providing our capital and
expertise, and have completed seven new investments and bolt ons from our Reading office alone since March.

In early December we backed Foundation SP, the award-winning provider of specialist digital transformation services. Our minority investment in the Reading-based business is supporting the existing leadership team to expand its range of services and explore complementary acquisitions.

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Private equity can offer business leaders the support to help navigate the challenges ahead and continue to grow.”
Lawrence Dean
Head of LDC in the South

Over the summer, we also partnered with Aker Systems, supporting the management team to further invest in research and development, as well as to expand its team to meet an uplift in demand.

These deals followed our investment in James and James Fulfilment in March. Since we partnered with the management team, they have continued to grow the business quickly and, in just two months of the deal, signed a lease on a new facility to expand its warehousing and distribution capacity.

We are also helping our portfolio companies to capitalise on new opportunities. This year, specialist communications technology provider Babble completed four acquisitions, taking it up to seven since it partnered with LDC in 2017. Its success led to our partial exit in November 2020, in a transaction that valued the business at £90million. Similarly, SaaS HR, payroll and recruitment solutions business CIPHR announced the acquisition of Digits Industries Ltd in August.

While the pandemic continues to present new challenges, I am confident that the region’s ambitious business leaders will continue to adapt and emerge stronger. With the support of our
sole investor Lloyds Banking Group, we are committed to supporting businesses, no matter the economic climate.

Backed by our national commitment to invest £1.2bn over the next three years, we stand ready to support more businesses across the South of England with our capital, support and optimism.

Lawrence Dean

Head of LDC in the South

Read or download our latest newsletter Southern View 2020 below:

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