LDC has committed to investing £1.2bn in equity to support the growth plans of SMEs over the next three years.
Its chief executive, Toby Rougier, said that supporting the expansion ambitions of SMEs in "every corner of the 海角视频” would remain its “primary purpose."
Mr Rougier, who took up his role earlier this month, said he expected to increase annual investment levels in 2021 as more SMEs looked to return to growth and larger corporates looked to divest subsidiaries to strengthen balance sheets.
The firm, part of Lloyds Banking Group, invested more than £240m in 14 new investments last year, continuing its commitment to 海角视频 SMEs despite a market-wide slow-down in 海角视频 private equity investment due to the cronavirus outbreak and resulting economic uncertainty.
Investments included commercial vehicle accessories maker Rhino Products, e-commerce fulfilment provider James and James, pensions support specialist Ross Trustees and cloud-based technology experts Kerv.
It also worked closely with portfolio businesses to help them grow through ‘buy and build’ strategies, providing follow-on capital to support 35 bolt-on acquisitions.
Transactions included telecoms group Onecom making two acquisitions in the last six months, residential lettings firm Linley & Simpson marking its 18th acquisition under LDC’s stewardship, and MSQ Partners completing the public-to-private acquisition of the Be Heard Partnership.
LDC, which marks its 40 anniversary in 2021, also said it had continued to source strategic buyers for some of its ambitious portfolio, including the sale of chilled savoury pastry manufacturer Addo Group to PAI Partners, global education technology business Texthelp to Five Arrows and Panther Logistics to US-based AIT Worldwide Logistics.
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Working in partnership with portfolio management teams, last year the firm generated £875m in proceeds, with an average money multiple of 3.6 times and an internal rate of return of 57%.
Of the companies LDC sold in 2020, the average hold period was 4.4 years, whilst management teams achieved an average sales growth of 203% and profit (Ebitda) growth of 246% during their partnership with LDC.
Dewi Hughes, head of LDC in Wales and the South West of England, said: “2020 has been a year like no other, with unique challenges faced by us all.
"But despite this period of uncertainty, the ambition and resilience of businesses shone through as many adapted their offering or pivoted their proposition with impressive agility. This is testament to the quality of management teams across Wales and the South West.
“Despite uncertainty continuing into 2021 for many businesses, the year ahead presents a number of opportunities for those looking to scale and diversify, and we’re committed to supporting management teams across the South West and Wales with the capital and experience to help realise their growth ambitions.”
Its investment in Wales includes the backing Zip World, the expanding outdoor adventure firm.
The firm, secured a significant minority investment from LDC in 2018. The deal valued Zip World at £45m.
LDC’ is backing Zip World's growth strategy, including a new zipwire attraction at the former Tower Colliery site in the Cynon Valley which is scheduled to open later this year.