LDC investments climb to £250m in 2010

Troubled Icelandic fund KCAJ achieves a 3x multiple from the sale of outdoor clothing retailer Mountain Warehouse.

Lloyds Development Capital (LDC), the private equity arm of Lloyds Banking Group, has completed its ninth deal of the year with the purchase of a 20 to 25 percent stake in outdoor clothing specialist Mountain Warehouse. The deal brings LDC’s total capital invested for 2010 to £250 million (€300 million; $385 million).

Financial details were not disclosed but a statement from LDC said it valued the company at more than £50 million.

LDC has been the most active player in the UK mid-market in 2010, according to financial data provider Mergermarket, deploying more capital into a greater number of deals than any other firm in its segment.

In 2009, LDC drew criticism for being the most active private equity investor in the UK despite its parent company having been bailed out using taxpayers’ money.

Icelandic private equity firm Arev invested in Mountain Warehouse in July 2007 through its retail sector-focused fund KCAJ, and achieves a 3x multiple on its original investment as a result of the sale.

KCAJ went through a voluntary restructuring in 2009 in the aftermath of the financial crisis.