We’re known for being a pretty flexible investor so chances are we do most of the deals you’ll be looking at. To outline some of the most common situations we can back:
Growth capital: If you’re looking for funding to grow and expand your existing business, we can invest growth capital to accelerate your plans.
Management buy out: If a management team is looking to purchase a significant shareholding in the business they manage, we can back a management buy out (MBO) to support this. For example, at Red Box Recorders the founders wanted to exit and realise the value they had created in the company over the previous years, allowing for the management team to effect a buyout.
Replacement capital: If you have founded a business you might want to sell a stake, but because you can also see its continued potential you may want to remain and continue to be part of its growth. Replacement capital allows shareholders to do this, with the private equity firm investing for typically a minority stake in the business, whilst still leaving the founder with equity that’s valuable too. Find out more in this article on why business owners may choose replacement capital.
Secondary buyout: If management has already attracted private equity investment but the incumbent private equity firm is looking to sell its stake, we can invest in a secondary buyout. For example we invested in rhubarb in 2016 following four years of investment from another private equity firm.
Minority/majority: we invest in both minority and majority stakes. Because the relationship we build with the management team is the most important thing, we can be relaxed about whether we take a minority or majority stake – for us it’s all about partnership, shared ambition and the growth opportunity.
Acquisitions: We provide acquisition capital to finance a business’ buy and build strategy. This can be in the initial investment or follow on funding at a later date, for example our follow-on investment in Enterprise Finance in 2014 funded the acquisition of West One Loan limited, increasing the value of loan assets under the group’s control, diversifying its funding sources and adding to its lead generation capabilities.
To find out more about types of deals have a look at the British Private Equity & Venture Capital Association website.
We are well established across our four sectors:- Find out more about our business services experience
We make primary investments in the UK, Australia and New Zealand. In addition to this we support our investee companies in making acquisitions across the globe and have an office in Boston to support expansion and M&A in the US.
Through 100+ investments we’ve recognised that there are vital catalysts that accelerate growth. This experience has shaped our growth accelerators – core value creation capabilities designed to unlock your business’s potential. We’ve found market specialists to support management teams to inspire change, to transform the value and develop long term sustainable growth.
We have a core bank of growth accelerators:
- International growth
- Corporate development
- Customer acquisition and retention
We understand that for business owners, it’s more than just business. Working with Livingbridge means working with people who will share your sense of ambition, offering support to make it happen. We also think we’re a pretty decent bunch of people, dedicated to the businesses we work with.
But we know that it’s best if you hear what it’s like working with Livingbridge from the people who chose to do so. Hear from our management teams about how they have found working with us.
Whilst we’re likely to think that private equity is an amazing way to grow your company, and we wouldn’t invest in companies if we didn’t believe we could help its potential to be realised, it’s a very important decision for both you and your business.
And it isn’t for everyone. Although we don’t intrude unnecessarily in the businesses we invest in, we believe it should be a partnership and want to be able to help management teams with the best direction of travel and provide the support they need along the way. If the idea of someone else sitting in your board meetings or asking questions about your business fills you with rage, then it’s probably not going to work out!
However, a lot of founders and entrepreneurs think that this type of investment isn’t for them because we’re going to needlessly fill their day with reporting or interfere in the running of the business for the sake of it. It’s not our style, and we know it’s not yours. We invest in people because of their entrepreneurial spirit and we encourage the business to invest in its future, to be bolder and to free themselves up to make the decisions that can really impact the direction of their business.
The big question you should be asking yourself is what you want to achieve for your business and what you need to make that happen. Let’s say you’re a business looking to refurbish offices or sites, you probably don’t need a private equity investor to make that happen. If you want to launch yourself into overseas markets though, you might want the backing from a PE investor who has done it before who can help guide you and give you the benefit of their experience. The right investor will be able to have an open and frank conversation with you about what your options are, and what might be right for you.
Please get in touch to talk to one of our team if you’d like to find out more.