Electra buys LDC-backed Davies Group for £60m

The secondary buyout completed on 30 September. Electra Private Equity PLC and Electra Partners Club 2007 LP invested a total of £49m in equity for the deal. Davies management rolled over a "significant" but undisclosed amount.

Electra plans to support Davies Group CEO Charles Crawford in the further development of the company's offering.

LDC generated a money multiple of 3.5x and an IRR of 45% on the exit.

Debt
Details of the debt structure have not yet been disclosed.

Previous funding
LDC backed the £27m management buyout of Davies Group in February 2008. It provided £8.6m of equity for a majority stake, with a debt facility provided by HSBC.

As part of the buyout many Davies Group's partners left the business and it was restructured from a partnership to an incorporated business.

During LDC's holding period the firm grew its profits from £3.5m to £8.4m and increased employee numbers to 600.

Company
Davies Group is a claims management company acting on behalf of insurers, service companies and brokers. As well as claims management the firm also offers validation and loss adjusting services and claim fulfilment. It processes in excess of 125,000 insurance claims per year, equivalent to roughly £500m of insurers indemnity spend.

The London-based firm is was founded in 1968 and employs approximately 600 staff.

People
Alex Fortescue, Charles Elkington and John Martin handled the deal for Electra Partners. Richard Stewart led the exit for LDC.

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• Topics
• UK / Ireland
• Buyouts
• Exits
• Support services
• Secondary buyout
• LDC
• Electra Partners LLP