LDC invests in tech and procurement firm The 55 Group as Maven exits after three years

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Private equity giant LDC has made a “significant investment” in Yorkshire tech firm The 55 Group with Manchester investor Maven exiting after three years of growth.

The 55 Group was founded following Maven’s investment in 2021 and includes three brands – procurement platform Pagabo, contract management software Sypro and social value measurement software Loop. Since 2022 it has more than doubled in size, employing almost 100 people, and has moved to a new headquarters in the centre of Hull.

Now LDC is backing The 55 Group’s existing management team, led by co-founder and CEO Simon Toplass, as it bids to grow further. Maven has also reinvested a portion of its exit proceeds and will retain a small shareholding in The 55 Group. Tech entrepreneur David Brennan, non-executive Chairman of business mobility provider Nexus Vehicle Rental, will join the board as non-executive chair.

Mr Toplass said: “Our stable of brands are perfectly positioned to support organisations at every stage of the procurement and construction management process, making it easier for both buyers and suppliers of construction services to factor metrics like social value into decision making, which are essential if the entire ecosystem is going to continue to have a positive impact on communities.

“The help of the team at LDC, who have a proven track record of supporting technology and services businesses like ours, will be invaluable as we continue to invest in our offering and take the business to the next level.”

He added: “Our partnership with Maven has been instrumental in realising our vision of creating a business that supports the evaluation of social value, ethical procurement, and sustainable contract and risk management across the built environment. Their funding, support, and shared vision have been pivotal in our rapid growth and the successful development of The 55 Group.”

Dan Smith, partner and head of Yorkshire at LDC, said: “The 55 Group is a great example of a fast growing Yorkshire business led by a hugely ambitious team. It represents LDC’s third investment in the region in just under 12 months, underlining our commitment to supporting the best businesses in Yorkshire. It is also another example of the strength of our leading software and data credentials in the built environment space, where we continue to see a shift towards more digital ways of working and an increased focus on ESG.”

Will Scales, investment director, added “We are delighted that Simon and team have chosen LDC as their partner to support the delivery of The 55 Group’s next phase of growth. The quality of The 55 Group’s offering and technology in supporting sustainable and compliant practices is unique and we are excited about what the future holds for the business as it continues to invest in its people, products and services.”

The 55 Group deal is the third successful exit for Maven’s Buyout Fund, following the exit from John McGavigan in 2022 and the recent sale of Titan Wealth to Parthenon Capita. Maven says those deals both “achieved a money multiple return in excess of 3x”.

Ryan Bevington, partner at Maven, said: “The successful sale of The 55 Group underscores the value of our investment strategy which is focused on backing exceptional management teams running high growth businesses, which often require investment or additional expertise to unlock their potential.

“In less than three years, we’ve seen the successful integration of three complementary businesses and the creation of an ESG focused digital platform which supports many of the UK’s leading public and private sector organisations in the delivery of their infrastructure plans.”

The 55 Group shareholders were advised by Rothschild (Stephen Griffiths and Josh Harvey), Addleshaw Goddard (Richard Hunt, Peter Wood, Tom Hopwood, Caera Loughran), Gateley (Paul Jefferson), Graph Strategy (James Tetherton) and KPMG (Chris Stott). Management were advised by Park Place (Richard Firth).

LDC was advised by KPMG (Ben Taylor), Squire Patton Boggs (Paul Mann and David Milne), DSW FDD (Jonathan Steed), PMSI (David Crout), Better Faster Growth and Catalysis.

HSBC, advised by DLA Piper, provided financing and working capital facilities to support the deal. .

The transaction was led by LDC’s team in Yorkshire, including partner and Head of Yorkshire Dan Smith, investment director Will Scales and investment managers Ana-Maria Garaba and Anthony West.

Ryan Bevington and Jeremy Thompson, partners in Maven’s Manchester office, led the original investment through to exit for Maven.

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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LDC invests in tech and procurement firm The 55 Group as Maven exits after three years

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Governments pledge to ban trail hunting in spotlight as Boxing Day hunts meet

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