Private equity driving growth

Firms often hold back in times of uncertainty when it comes to driving growth. But it’s at times like this that they should get on with that they do best – taking opportunities when they arise, while keeping an eye on external risks, writes Yann Souillard, head of London & South at LDC.

What is important is that management teams have access to the right support and backing to help them succeed. Whether it’s additional capital or strategic direction and expertise that’s required, they should remember that they don’t have to go it alone and there are options available.

While bank debt finance is often the go-to route for many firms, there are alternative options like private equity funding which can turbocharge growth and bring long-term, added value.

And private equity works best when it is collaborative. We partner with management teams, working closely with them from the outset to understand their vision and motivations.

In doing so, we can establish where we can achieve significant growth and build scale, whether it’s through a buy-and-build strategy, acquiring new premises, launching new products or expanding into new markets.

Take Oxfordshire-based ByBox, a market leading technology company specialising in supply chain solutions and field engineer services for major UK technology and telecoms customers through its software and locker network.

We backed the entrepreneurial leadership team, providing £37.5 million of acquisition and development capital to accelerate the international growth of the business in 2016.

Since partnering with the business, we have been working closely with the team to help drive its organic growth in the UK and have expanded its technology offering with the launch of its latest product, Stockonnect. This new technology will enable businesses to better manage delivery of parts to large sites and reduce stock loss.

This is just one example of private equity in action. The rewards it can generate are substantial. And the future success of the UK economy is boosted by those businesses who are embracing opportunity and seeking out growth.

ldc.co.uk