Manchester-based team commits to increasing its support to the region’s medium-sized businesses
The North West team of the UK’s leading mid-market private equity firm LDC has celebrated a record year, completing transactions with a combined enterprise value of more than £500m in 2021.
In its annual performance summary, LDC, the private equity arm of Lloyds Banking Group, said it will increase its support for mid-market businesses across the North West, underpinned by a commitment to invest in at least 100 medium-sized businesses nationally over the next five years.
In 2021, the team’s investments included Rochdale-headquartered wireless surveillance products supplier WCCTV, Warrington-based preventative healthcare specialist PAM, Alderley Edge-based software company IEG4 and developer of mobile, console and PC board games Marmalade Game Studio.
The firm also exited successful partnerships with Middlewich-based SRL Traffic Systems, after supporting the business to more than double revenues through increased investment in its fleet and network of depots, and the sale of Speke-based ChargePoint, following a four-year partnership that saw the specialist manufacturer develop new products and accelerate a successful international growth strategy.
In addition, LDC’s North West team helped its portfolio to acquire businesses to build scale and resilience. It supported environmental compliance specialist SGI Compliance to make an acquisition to expand its services into industrial water treatment and helped marketing group MSQ to make three acquisitions to further enhance its services.
To support LDC’s commitment to increase investment in mid-market businesses across the region, the North West team recruited two new investment professionals. Grant Goodwin and Camilla Greenwood joined the team as Investment Managers. Grant joined from Ardenton Capital where he was a Senior Investment Manager in the Manchester office, while Camilla previously spent over six years at PwC working in Transaction Services and External Audit.
Dale Alderson, Partner and Head of North West at LDC, said: “We have been really impressed by the desire from management teams to deliver on their growth strategies over the past 12 months. The resilience and ambition of the region’s business leaders has been remarkable, and we’re proud to be celebrating a record year in supporting local businesses to achieve their growth targets.
“We are committed to increasing our support of North West businesses and have the expertise and resources to help management teams across region to realise their ambitions.”
Nationally, LDC backed 19 new management teams and invested more than £400m during 2021, despite continuing disruption caused by the Coronavirus. It also provided additional capital to existing portfolio companies to complete 65 acquisitions, helping them to scale and diversify.
Across the UK, LDC generated over £870m of proceeds from a total of 18 exits during the year with an average money multiple of 2.5x which it said underlined its value-adding approach. The companies it sold on average increased revenues by 64% and grew employee numbers by 60% during their partnership with LDC.
Commenting on LDC’s performance, LDC Chief Executive Toby Rougier said: “Despite the ongoing challenges in many parts of the economy, our teams increased investment and support into mid-market companies across all the regions of the UK.
“As the UK looks to recovery and growth, this army of medium-sized companies will be critical. It is the backbone of British business and the engine room of our economy, teeming with talent and packed with potential. Given their ability to scale, these are the companies that, with the right support, can turbo-charge the recovery.”
LDC has also committed to ensuring its investment activity makes a meaningful contribution to the UK’s environmental and social challenges. The firm has pledged to ensure its own operations are net zero by 2030 and to support portfolio companies to reduce emissions by 50% in the same timeframe.
LDC’s partnership with The Prince’s Trust – which helps young people across the UK explore and launch their own business through start-up grants, volunteering and mentoring – has supported more than 1,600 young entrepreneurs in the last three years.
