LDC Guides Corporate Carve-Outs to Success
Deal News | Apr 01, 2025 | LDC
The article discusses the role of LDC, a private equity firm, in facilitating corporate carve-outs, particularly in the North West of the UK. Lizzie Meadowcroft, the VCP Director at LDC’s Manchester office, outlines how private equity partnerships can help divisional management teams gain autonomy, ownership, and investment to pursue growth after separating from a parent company. The article highlights the complexities involved in the process, especially creating a standalone business entity with independent operations like IT, payroll, and organizational structuring. LDC's track record is stressed, with the instance of HSL Compliance's successful spin-off from SGI Holdings underscored as a pivotal case. LDC's involvement, alongside strategic partnerships and advisory networks, has been integral in transforming carve-outs into long-term growth prospects for management teams.
Sectors
- Private Equity
- Corporate Finance
- Advisory Services
Geography
- United Kingdom – The article is set in the UK, highlighting LDC's role in corporate carve-outs in the North West and other regions.
- Europe – Although primarily UK-focused, the article mentions European operations like SGI Compliance's sale, indicating a broader geographical scope.
Industry
- Private Equity – The article focuses on the role of private equity in corporate carve-outs, highlighting how PE firms support growth and sustainable development for newly independent businesses.
- Corporate Finance – The discussion around corporate carve-outs involves significant corporate finance elements such as restructuring, investment, and financial planning for spin-offs.
- Advisory Services – The article notes the importance of advisory networks including legal and corporate finance advisers who facilitate the successful execution of carve-outs.
Financials
- GBP 20 million – Initial investment by LDC to support the carve-out of SGI Holdings Ltd from its parent group Kiwa in 2019.
- GBP 77 million – Quadrupled revenues of HSL Compliance by the end of its partnership with LDC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LDC | Private Equity Firm | Company | A UK-based private equity firm involved in facilitating corporate carve-outs and providing strategic support and investments. |
| Lizzie Meadowcroft | VCP Director | Person | Director within LDC's Value Creation Partners team, providing leadership in operational improvements and carve-out strategies. |
| HSL Compliance | Carved Out Company | Company | A provider of environmental compliance services that successfully navigated a corporate carve-out with LDC's support. |
| SGI Holdings Ltd | Target Company | Company | The company from which HSL Compliance was carved out, supported by LDC in its growth and independence. |
| IK Partners | Investor | Company | An investment firm providing fresh investment for the continued growth of HSL Compliance. |
| Kiwa | Vendor | Company | The parent group from which SGI Holdings was carved out. |
| Lloyds Banking Group | Financial Support | Company | Provides evergreen capital support to LDC for its portfolio companies' growth ambitions. |