Lloyds plans £1.2 billion boost for UK mid-sized firms

Lloyds Development Capital announces plans to invest £1.2 billion in UK middle-tier businesses over the next three years.

The private equity division of Lloyds Banking Group, Lloyds Development Capital (LDC), has recently detailed its plans to invest £1.2bn in medium-sized businesses in the UK over the next three years.

These plans will aim to boost growth in the British “Mittelstand” companies and the economy also, according to LDC.

“Mid-sized businesses are vital to the UK economy, and our core aim is we want to help them grow more quickly,” said Chris Hurley, joint chief executive of LDC. 

He added that “private equity is a powerful catalyst” and could help British firms take their business international, especially since LDC’s expertise will also be on offer.

According to LDC, the funding will be spread across all regions and sectors in the UK to support the “forgotten army” of medium-sized British businesses - who represent 0.5 per cent of active businesses in the UK but contribute one-fifth of employment and turnover. 

Since being founded in 1981, LDC has become one of the busiest investors in the UK’s Mittelstand in terms of deal volume in the year to date - having made six deals this year for a total value of £200 million, including construction firm Aspin Group and holiday parks Away resorts. 

LDC has been known to invest up to £100 million in British companies and has backed more than 425 firms across a range of sectors - including manufacturing and industrial, retail and consumer goods, healthcare, technology, media and telecoms, travel and leisure and support services. Over the last three years, LDC has invested nearly £1 billion in the middle tier of UK businesses.

Mr Hurley also added that not only does private equity investment provide capital for funding, but it: “Brings the market-leading strategic and operational expertise of our teams and non-executive network to help management teams overcome the barriers to growth and unlock the business’ potential.”

“We’re determined to play a part in accelerating growth for those companies with the ambition to become true market-leaders,” he added.

Recently, LDC lured away former Deloitte partner Simon Adcock to the position of portfolio director. In his new role, Mr Adcock will act as a national resource to LDC’s portfolio of 90 companies, which generates combined revenues of more than £4 billion and creates around 30,000 jobs.

“Given the rate and scale of new investment, the quality and size of the portfolio and the calibre of its investment and portfolio teams, this is an exciting time to be joining the business," said Mr Adcock.