Friday 02 November 2012 by Catherine Baksi
Regional firm Keoghs has secured a 'significant investment' from a private equity investor following approval as an alternative business structure this week.
Mayfair-based LDC, part of the Lloyds Banking Group, is to buy a 22.5% share in the firm in a deal that will formally complete on 9 November, Keoghs announced today.
Keoghs, founded in Bolton 44 years ago, is a defendant firm acting for over 60 insurers, public sector bodies, and large corporates, handling around 40,000 claims per year. The firm employs more than 1,200 people in Bolton, Coventry and Manchester.
The firm said that the involvement of LDC will enable it to continue investing in people, processes and technology infrastructure while providing capital for potential strategic acquisitions to add complementary services and scale to its operation.
Chief executive John Whittle said: 'This is an important stage in our development. Securing the support of a long-term investor like LDC enables us to accelerate our growth strategy and invest significantly for the benefit of our clients, ensuring we're able to meet the sector's complex, evolving requirements and improve outcomes.'
LDC says it specialises in providing between £2m and £100m in equity finance for unquoted companies with a turnover of more than £5m and profits of more than £1m.
Director John Garner said: 'Keoghs occupies a position of real strength in the defendant insurance sector, with a well-earned reputation for quality and cost-effective service.
'We're excited about the opportunity to support the firm's continued expansion and development as an ABS in an evolving and growing market.'
LDC is the second private equity firm to enter the legal services market, following Hamilton Bradshaw's investment in Knights Solicitors, announced in June.