LDC makes ‘significant’ investment in LendingMetrics
Private equity investor LDC, which is part of Lloyds Banking Group, has made what it called a “significant investment” in credit risk technology group LendingMetrics.
The deal is intended to help LendingMetrics to accelerate new product development within its core financial services sector and expand its network of partners in its consultancy and data services division.
The backing from LDC will also enable LendingMetrics to explore complementary acquisitions and diversify its presence in new vertical industries with similar credit risk challenges, such as the telecoms, utilities and insurance markets.
LendingMetrics was founded in 2010 and its clients include building societies, online lenders, mortgage companies, credit card providers and commercial lenders.
Among its product suite LendingMetrics has an auto decision platform (ADP), a proprietary multi-bureau credit referencing product, and DeeJoop, a proprietary credit data deduplication tool.
Read more: Allianz and AlTi join forces on UHNW private debt program
“With the support of LDC we can invest for further growth, especially in our R&D team,” said LendingMetrics co-founder and chief executive Neil Williams. “Having firmly established products such as ADP to be truly industry leading and launched innovative and peerless products such as DeeJoop, our aim is to bring an expanding suite and capability of risk solutions and data services to more businesses and sectors, while preserving the agility, independence and focus on client value and service that have made us successful to date.
“LDC’s track record in backing technology businesses speaks for itself, but it was the LDC team’s approach to the investment that made the difference. They’re already providing the kind of strategic input we expected from an experienced investment partner, but they back us as a team to lead the business and pursue our own vision and ambition.”
LDC investment director Oliver Schofield added: “Neil, David and the wider LendingMetrics team have built a highly sophisticated and disruptive technology stack that is at the cutting edge of credit risk technology and has made the business a critical, trusted partner to their clients. We’re excited to be backing the team and helping them to scale in what is a fast-growing and rapidly evolving market.”
Read more: Private credit’s tech awakening
LendingMetrics was co-founded by the firm’s commercial director David Wylie.
In the last decade, LDC has invested £715m into fast growing technology businesses. The transaction was led by Schofield, LCD investment manager Vera Kuehne and partner and head of region Dewi Hughes.
LendingMetrics was advised by Sequence Advisers (corporate finance) and RWK Goodman (legal).
LDC was advised by FRP Corporate Finance (corporate finance), Womble Bond Dickinson (legal), BDO (financial and tax due diligence), Armstrong (commercial due diligence), Coppett Hill (sales due diligence), Alvarez & Marsal (tech due diligence) and Aon (insurance due diligence).
The transaction is subject to Financial Conduct Authority approval.
Read more: FCA chief calls for “proportionate regulatory approach” to private markets
