Lloyds Banking Group’s private equity arm is vowing to increase investment into South West companies in 2020 after injecting £365million in capital across the UK last year,.
LDC, a mid-market private equity firm, backed 18 ambitious management teams across the UK in 2019, including several in the West Country.
These included Paignton-headquartered traffic management firm Amberon, Bristol TV production company Plimsoll Productions and.
LDC, part of Lloyds Banking Group, said the role of private equity in supporting the UK’s small and medium-sized businesses was “more important than ever”.
The firm said the plan formed part of its rolling three-year nationwide commitment to invest £1.2billion of capital, with the South West remaining a strategic focus for the investor.
In an annual summary of its performance, LDC – which typically invests between £5million and £100million in a single transaction – said every one of its seven UK regional teams invested last year, demonstrating the strength of the firm’s regional network.
In 2019, LDC’s South West and Wales team, which has offices in Bristol and Cardiff, invested in Plimsoll Productions, one of the largest independent television production companies in the UK, and has offices in Bristol, Cardiff and Los Angeles.
Following the £80million deal and with LDC’s support, founder Grant Mansfield and his team are driving the business forward by investing in its natural history and documentary divisions as well as looking towards further expansion into the US and new global markets.
At Onecom, the management team is speeding up growth plans following a £100million deal.
And at Amberon, a £25million funding package provided in 2017, alongside HSBC, kick-started a partnership which super-charged the group’s turnover by 23% to £37.5million during an 18 month period.
For exits, LDC worked closely with management teams throughout 2019 to drive value despite tougher market conditions.
The firm completed 11 exits nationally which contributed to £330million of total proceeds during 2019. The management teams of these exited businesses achieved an average sales growth of 90% and grew employee numbers by almost 80% during their partnership with LDC.
Dewi Hughes, head of LDC in the South West and Wales, said: “We have already invested more than £225million to support the growth of businesses across the South West and Wales, and the calibre of management teams we’re seeing, coupled with their ambitious expansion plans, means we’re set for another very exciting 12 months ahead.
“We’re always on the lookout for management teams who want to go that one step further, whether that’s increasing geographical footprint, targeting diversification or bringing something new to market. It’s why we’ve committed to investing £1.2billion nationally over the next three years – making sure they have the capital and expertise to bring their ambitions to life.”
Martin Draper, chief executive of LDC, said: “We see growth prospects across all corners of the UK, and our market-leading regional presence means we’re on the ground, prepared to deploy more of our capital and unique expertise to help management teams capitalise on what is set to be a year of opportunity.”
LDC’s commitment to backing ambition extends beyond the mid-market. In 2019, LDC partnered with The Prince’s Trust to help young people across the South West explore and launch their own business through start-up grants, volunteering and mentoring.
