LDC to be spun out

Lloyds has denied that it is to sell off the buyout firm, which invests solely from the banks' balance sheet. Instead, LDC is expected to start fundraising from third-party investors by 2013.

The news comes after rising political and regulatory pressure to separate the bank's involvement in risky activities such as private equity. Lloyds is 40% owned by the government, meaning that a large share of LDC's £2.3bn portfolio comes from the taxpayer.

Having invested £230m in 11 deals, LDC has been the most active buyout firm in the UK this year. The fact that LDC pays carried interest on a deal by deal basis and that the private equity house remained largely active during 2009 attracted criticism, saying that excessive risks were taken with taxpayers' money.

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• Topics
• UK / Ireland
• Financials
• LDC
• Lloyds