LDC to invest £200m into Northern firms this year

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Private equity firm LDC has revelaed plans to invest £200m into Northern businesses during 2019, despite the unsettling climate.

The firm has committed to investing £1.2billion in “ambitious high-growth firms”, which includes investing £200million in businesses across the North of England and Scotland over the next 12 months.

Last year LDC invested £437million of equity across 23 new deals nationwide, a record total for the business.

Key deals in Yorkshire and the North East included a £10million investment in property agency Linley & Simpson and a £31.8million investment in NBS, the commercial arm of the Royal Institute of British Architects (RIBA). The firm also backed the secondary buyout of transport management software developer Mandata in a £20million deal to accelerate its organic growth.

In addition the Yorkshire and North East team also divested two businesses, leading video games developer and publisher Team17 and the iconic Yorkshire crisp brand, Seabrook. The team’s divestment in Team17 was marked by a £217million listing on AIM.

John Garner, head of LDC in Yorkshire and the North East, said: “Businesses in Yorkshire and the North East continue to show an unwavering optimism about the future that’s typical of the culture here.

“There is a genuine desire to create thriving and successful businesses, which is why we remain committed to supporting firms across Yorkshire and the North East with funding, expertise and flexibility.

“LDC has pledged to invest £200m in businesses across the North in 2019, and it’s my job to deploy a significant portion of this to local firms with an ambitious management team and a clear growth strategy.

“We are looking forward to supporting the region’s high-growth businesses on the next step on their journey.”

Alongside its investment and exit performance, LDC also provided a national summary of its portfolio impact from 2018, confirming that companies it sold during 2018 had increased their enterprise value by an average of 138 per cent during its partnership, grown sales by 79 per cent and profit by 45 per cent.

Martin Draper, CEO of LDC, added: “Last year was another milestone year for LDC, which saw us deploy our capital and expertise from every one of our regional teams. The outcomes achieved not only demonstrate the success of our unique, value-driving model, but also the importance of having a presence in the region to create enduring partnerships that enable companies across Yorkshire and the North East to thrive.”