REFLECTIONS - LDC

INVESTMENT REVIEWPERFORMANCE THROUGH PASSIONOCEAN OUTDOOR: IMAXThroughout 2012 our UK-wide investment teams have continued to build adiversified portfolio of high growth, mid-market businesses across a rangeof strategically important industries, despite challenging economic conditions.Despite a diversity of sectors,business models, sizes andinternational exposure, thecommon denominator, asever, has been the calibre ofmanagement teams.In the year to date, wehave supported firms acrossgrowing technology, mediaand telecoms (TMT) industries,including boutique mediacompany Ocean Outdoor –which fills a unique positionin the outdoor advertisinglandscape – to strengthen itspresence across the UK’s top10 cities.We have also backed themanagement buyouts ofambitious exporters withexposure to growing overseasmarkets, including BifoldGroup, a valve producer forhazardous, corrosive andsubsea environments.The support services segment,too, has been an importantfocus during 2012. Ourbacking of the managementbuyouts of TD Travel, a leadingindependent business travelagent, and Airline ServicesLimited, which providesessential maintenance, repairand overhaul services to airlinesand aviation businesses in theUK and internationally, haveillustrated our confidence inthe sector.To date, we have deployed£250m of equity across 16new businesses, maintainingour 2011 commitment andtaking our five year total toaround £1.5bn.The market for high qualityinvestments has remainedcompetitive this year, while dealstructures have continued to beconservative. As such, our focuson self-origination and buildinglong-term relationships withstrong, ambitious managementteams, has allowed us towin a number of competitiveprocesses and realise key offmarket transactions.We have also continued tosupport the ‘buy and build’strategies of our portfolio firmswith a further £40m+ of equityfunding to help them build scaleand broaden their propositions.A-Gas’ acquisition of leadingUS-based refrigeration supplierand distributor Coolgas Inc inOctober, transacted with oursupport, represented its fourthbolt-on of 2012 and the nextstrategic step in thecompany’s internationalexpansion strategy.Our flexible investment model,which backs management,To date, wehave deployedOVER £250mof equityacross 16new businessesdrives operational change andsupports both organic andacquisitive growth, continuesto be highly relevant in the lowgrowth environment.Throughout 2012 it hasattracted some of theUK’s strongest mid-marketbusinesses, each with their owndifferentiated propositions andmarket opportunities.6REFLECTIONS