Investec bolsters acquisition finance team

The UK lender has hired former Lyceum Capital executive Grant Davidson as it targets the dearth of lenders for lower mid-market private equity businesses.

Investec, the London-listed banking group, has hired Grant Davidson in its Growth and Acquisition Finance team. 

Davidson, who spent eight years at mid-market firm Lyceum Capital, will be in charge of sourcing and executing deals for both entrepreneurs and private equity firms. He will have a particular focus on working directly with growing businesses to back their expansion via debt-based financing structures. 

He is to join from LGC, a science business backed by Bridgepoint Capital, where he worked two years as finance director. He was previously associate partner at Lyceum Capital, which involved focusing on the origination and execution of deals across various services industries, as well as sitting on the board of a number of portfolio companies. These included Carewatch, the second-largest national  homecare business. 

Grant Davidson

“[Grant Davidson] brings a wealth of origination, investment and operational experience to the team and will play an important role in delivering our strategy of supporting high calibre entrepreneurial management teams and private equity firms with flexible financing solutions that enable them to maximise their returns,” commented Ed Cottrell, head of Investec’s growth and acquisition finance team, in a statement. 

The appointment comes at a time when a number of domestic lenders, under the pressure of weak macroeconomic prospects and new capital requirements regulation, are decreasing their exposure to private equity and small business lending. 

“We still see players dropping out rather than coming in. It’s a space we know well, and we see the opportunity and need to build the team to capture it,” Cottrell told Private Equity International

Investec’s growth and acquisition division provides financing to UK lower-mid market companies across the capital structure, from asset-based and leveraged lending to mezzanine and minority equity positions. 

“We want to have a team that has a variety of skills and can look at things both from a debt and an equity perspective. And we need someone to get out there and find deals for us,” Cottrell said.

The division, founded in 2003, now counts a total of 14 members.