Pictured: Martin Draper, Managing Director LDC Midlands with Investment Director Rob Schofield

Leading private equity provider LDC have announced that it will commit £200million of new investment to specialist engineering and manufacturing businesses over the next three years, reflecting its continuing commitment to the sector.

Martin Draper, Managing Director LDC Midlands, has a keen interest in supporting this sector and comments:

"LDC is committed to supporting the growth of high quality manufacturing and specialist engineering businesses.  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.    

"By pledging £200million of capital and a dedicated and experienced team over the next three years to this important sector, LDC is demonstrating a clear commitment to, and confidence in, UK manufacturing."

The initiative will be led out of LDC's Birmingham office by investment directors Steve Aston and Rob Schofield, both of whom have extensive experience of investing in and working alongside companies in this sector. 

Whilst this investment commitment extends to companies across the UK, businesses located within the manufacturing heartland of the Midlands will be a key area of focus for the initiative.

Specialist engineering and manufacturing remains one of the UK's most dynamic industry sectors with UK businesses proving resilient through the recent economic downturn and benefitting from demand from emerging economies.  

LDC has proven experience in the sector, having completed over 125 transactions in its 30 year history across a number of economic cycles. LDC's existing investments in this sector account for more than 20 per cent (by volume) of the portfolio and over £250million of investment.  

The Midlands team's existing investment portfolio includes Wolverhampton-based Nuclear Engineering Services an engineering solutions group focusing on the nuclear, marine and defence sectors; Kee Safety, a leading global provider of safety solutions headquartered in Meriden and AIM Aviation, a global leader in the design and manufacture of premium cabin interiors for commercial airlines with operations in the East Midlands.

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

The initiative will also be supported by LDC's Asian operation, which is based in Hong Kong.  Established in 2008, the Hong Kong office will play a significant role in this investment commitment, given its relationships with many manufacturing and supply-chain businesses located in high-growth Asian economies.

Darryl Eales, Chief Executive, LDC added: 

"Manufacturing is very much part of LDC's heritage and we have consistently invested in the sector even when it became less fashionable to do so.  Although LDC is a generalist private equity investor, the specialist engineering and manufacturing arena has long been a core area for our investment. 

"This is a national initiative for LDC, which will be led out of the Midlands by a team with considerable investment experience in this sector. We are looking to partner with high quality management teams looking to private equity as a source of funding to facilitate the expansion of their businesses into new markets and territories."