LDC set to invest in specialist engineering and manufacturing

Private equity provider LDC is to commit £200m of new investment to specialist engineering and manufacturing businesses over the next three years.

The announcement is said to form part of LDC’s wider strategy to invest £2bn in SMEs over the next five years.

The £200m commitment will focus on mid-market UK businesses in the £10m to £150m enterprise value range and those with specialist manufacturing capability in niche sectors such as aerospace and defence, oil and gas, or power generation.

LDC’s existing investments in this sector are said to account for more than 20 per cent by volume of its portfolio and more than £250m of investment. 

The initiative will be led out of LDC’s Birmingham office by investment directors Steve Aston and Rob Schofield. LDC’s Asian operation, which is based in Hong Kong, will also support the campaign.

‘Many UK businesses have developed best-in-class manufacturing technology and capability, and are extremely well placed to deliver strong and sustainable growth across both the established and emerging growth economies,’ said Martin Draper, managing director LDC Midlands.

‘We have consistently invested in the sector, even when it has been unfashionable to do so,’ added Darryl Eales, LDC’s chief executive. ‘Despite the current economic challenges, we regard the sector as highly attractive and its success remains central to wealth creation to UK plc.’