Mid-market private equity firm LDC is looking to accelerate investment levels and deal flow into growth firms in Wales this year.
In 2919, the private equity arm of Lloyds Banking Group, deployed £365m of capital to back 18 firms across the UK.
LDC said the plan formed part of its rolling three-year UK-wide commitment to invest £1.2bn of capital, with Wales remaining a strategic focus.
LDC typically invests between £5m to £100m per transaction. It also provides access to a pool of business experts, in fields such as digital marketing, to support the management teams of firms it takes equity positions in.
Last year LDC’s team in Wales and the south west of England, which has offices in Cardiff and Bristol, invested in Plimsoll Productions, one of the largest independent television production companies in the UK. Plimsoll has offices in Cardiff, Bristol and Los Angeles.
Following the £80m 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.
LDC is also supporting the growth of Gwynedd-based outdoor adventure business Zip World. The business has recruited a further 100 staff since securing the backing of LDC in December 2018. It is now looking to expand its sites beyond its North Wales heartland.
Last year LDC completed 11 exits UK-wide. They achieved an average sales growth of 90% and grew employee numbers by almost 80% during their investment partnership with LDC.
Dewi Hughes, head of LDC in Wales and the south west of England, said: “We have already invested more than £225m to support the growth of businesses across Wales and the south west, 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. I
"It’s why we’ve committed to investing £1.2bn UK-wide 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 expertise to help management teams capitalise on what is set to be a year of opportunity.”
Last year LDC partnered with The Prince’s Trust to help young people across Wales explore and launch their own business through start-up grants, volunteering and mentoring.
