Lloyds to invest £1.2bn in Britain’s medium-sized businesses by 2018

Private equity arm of Lloyds Banking Group has promised funding to help UK's mid-sized firms scale domestically and internationally

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

Intended to accelerate the growth of Britain’s “Mittelstandt” companies, the fund said it expects the investment to be balanced across UK regions and sectors and will be targeting companies seeking to scale domestically and internationally to become “the global businesses of the next decade”.

LDC has claimed the funding is necessary to support the “forgotten” mid-sized firms which currently represent just 0.5% of all businesses in the UK but contribute around one fifth of employment and turnover.

Founded in 1981, LDC typically invests between £2m and £100m in UK-based companies and has backed over 425 businesses across manufacturing and industrial, retail and consumer goods, healthcare, technology, media and telecoms, travel and leisure and support services.

In the year to date, LDC has invested £200, in six businesses, including helicopter services business PDG and holiday park group Away Resorts.

Commenting on the news, LDC joint chief executive, Chris Hurley, said: “Mid-sized businesses are vital to the UK economy, and our core aim is to help them grow more quickly.

“Private equity investment is a powerful catalyst. Not only does it provide the capital to fund investment, 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.”

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