LDC is planning to increase its investment activity in 2024, after already investing £350m in UK-based SMEs over the past twelve months. With the help of LDC, the companies it exited in 2023 generated an average revenue growth of 133%, EBITDA growth of 180%, and headcount growth of 159%. LDC invested £300m in 14 new businesses with a total enterprise value of over £1bn in 2023, whilst providing follow-up funding of £50m for its existing portfolio of over 90 companies and 46 bolt-on acquisitions.
LDC’s new investments included Sedex, a sustainability data and technology provider, Star Live, a specialist production agency, Horsefly, an AI-based talent analytics platform, and DSP, a fast-growing managed service provider. The highlights of LDC’s portfolio company acquisitions in 2023 include Onecom’s tenth bolt-on since LDC’s investment in 2019 and FSP’s acquisition of Savanti. LDC also generated £440m of proceeds from nine exits, representing an average money multiple return of 3.2x, with MSQ being a standout exit.
During 2023, LDC also made 18 new hires and 13 promotions, which puts it in a strong position to increase investment activity in 2024. CEO of LDC, Toby Rougier, stated that their success truly reflects the resilience and entrepreneurial spirit that make medium-sized companies the backbone of the UK economy. With market conditions improving, he believes that ambitious leaders behind these businesses will lead a resurgence of M&A activity in 2024 and LDC is remaining committed to partnering with them.
LDC has already helped more than 3,350 young people turn their business ideas into reality through their partnership with The Prince’s Trust, a leading youth charity. In 2023, LDC contributed £1.1m to charities across the UK and was awarded “Partner of the Year” at The Prince’s Trust Partnership in recognition of their ongoing support for the charity. The private equity firm also received recognition for their commitment to ESG and sustainable investing, receiving over 20 award wins in 2023 across the business, including Future 40: ESG Innovators and Future 40: Climate Change Champions list by Real Deal.
Overall, LDC continues to show its support in every corner of the UK through a consistent and reliable supply of new investment funding, focusing on the growth ambitions of portfolio companies, and building lasting relationships.
