What is private equity? And what is a private equity firm?
Put simply, private equity provides investment to grow your business or fund a change in ownership – in return for a share in the company. Unlike raising debt, you’ll also be backed by experienced business partners. Helping you build your business, your way, no matter the economic climate.
Private equity helps you open up growth opportunities without losing control of your business.
There are many different reasons to consider private equity and many different private equity firms to choose from. It’s an important step on your growth journey, so you need a partner you can trust.
Plimsoll Productions: Showcasing international ambition
Continue to grow your business
NBS: Partnering for growth
Buy the business you run
Panther Logistics: Delivering growth
Sell all or part of your business
When Tim Warrillow and Charles Rolls started Fever-Tree in 2005, the market for mixers was dominated by a single incumbent. By 2013, the brand had a turnover of £16m and the pair secured private equity investment from LDC to supercharge growth overseas.
LDC backed Tony Lockwood, the MD of BOFA International, to support the business’ international growth and product development. During the three-year partnership the business almost doubled its revenues.
Yachna Tak, CEO of Ashtons Hospital Pharmacy Services chose private equity as Ashtons Founder was approaching retirement and she recognised there was a significant opportunity to bring on board new expertise and funding to accelerate its growth.
The combination of investment and support means private equity can help you achieve your ambitious growth plans, whether they’re international, organic or acquisitive.
With 40 years’ experience, LDC will work to understand your priorities and help you choose the right growth strategies for your business.
If you’re looking to acquire another company or continue a buy and build strategy, private equity can help.
LDC’s financial investment and M&A expertise can help you identify, acquire and integrate complementary businesses.
Two thirds of our portfolio companies are on a buy and build strategy and in the first half of 2021, we supported our portfolio companies in making a total of 36 acquisitions.
Through funding and expertise, private equity backing can help you create partnerships, increase your exports, acquire an international business or establish a new office overseas.
LDC can work with you to choose the right international strategy for your business, having helped UK businesses succeed overseas since 1981.
Your business is already growing – private equity can help you grow even quicker, while maintaining your unique culture. It could be finding new premises or developing new products.
With LDC, you can be sure you’re being supported over the long-term, so growth is sustainable, even during challenging times. Think of it as your business, only better.
Private equity can be a catalyst for positive change – bringing energy, focus and relevant experience to complement your team.
With LDC, you could choose to work with our Value Creation Partners (VCP), a team of strategic experts to help identify and support the delivery of improvements to your operations.
If listing your business on the stock market is your dream, private equity can be an important stepping stone – or an alternative path in uncertain times.
Having helped the leaders of Fever-Tree, Joules, Team 17 and others, we can work alongside you to help make sure your business is fully prepared.
Types of private
Different types of private equity deals will suit different situations – from family businesses looking to succession plan, founder-led firms looking to de-risk or non-core divisions of larger groups looking to break free.
In each case and with the right partner, you can shape the deal structure and shareholding – from majority to minority.
If you want to buy a share in the business you run, private equity can help you gain control through a management buyout (MBO).
In the last five years, LDC has supported more mid-market MBOs than any other private equity house in the UK. We take a flexible approach, supporting you with a minority or majority investment.
Businesses with existing private equity investment often benefit from the fresh approach of a new investor through a secondary buyout (SBO).
You know how private equity works, but you’re not finished. And perhaps you’re looking for a different type of partnership, one with greater flexibility and a longer-term view?
Development capital – also known as growth capital or growth funding – is a capital injection into your business to further growth without a change in ownership.
LDC often partners with business founders or leaders to invest for a minority shareholding, backing you and your team to deliver future growth with confidence.
A corporate carve out or disposal via private equity can create a deal structure that suits for all parties – working with the management team to buy the business, remove barriers and take the business forward.
In the last three years alone LDC has completed eight corporate carve outs, with a combined value of almost £300m.
Private equity. Step-by-step
Your guide to a typical private equity process. Every investment is different – but we’ll work to make sure the approach works for you.
Private equity. Made clearer
We want to make private equity as straightforward and transparent as we are – take a look at our glossary if you’ve spotted any jargon.