UK mid-market private equity firm LDC has made an undisclosed investment to support PEI Media Group‘s management buyout. Quayle Munro, PwC, Alvarez and Marsal and CMS Cameron McKenna advised LDC on the transaction while Liberty Corporate Finance, Pinsent Masons and PwC advised PEI’s management. Headquartered in London, PEI is a publisher of financial news and information.
LDC, the leading UK mid-market private equity firm, has backed the management buyout of PEI Media Group Ltd (“PEI”), one of the world’s leading alternative assets information groups.
Founded in 2001 following a buyout from Euromoney Institutional Investor plc, PEI has developed a portfolio of globally recognised publications, databases and branded events focused exclusively on alternative asset finance and investment. Its products and services sit at the heart of the fast-growing markets of private equity, real estate, infrastructure and private debt.
The PEI publication portfolio includes Private Equity International, PERE, Infrastructure Investor, Real Estate Capital and pfm. PEI has also expanded into emerging alternative investment fields and practices, successfully adding such publishing brands as Private Debt Investor, Agri Investor and Secondaries Investor.
Alongside its core publications and databases, PEI brands host over 50 events globally every year, with flagship annual conferences including Infrastructure Investor Europe in Berlin, PERE Asia in Hong Kong, PEI COOs and CFOs Forum in New York and the PERE Europe in London.
As part of the transaction, LDC is backing the strong management team led by Chief Executive Tim McLoughlin and has made a significant equity investment in return for a minority shareholding. The group’s original founders, David Hawkins and Richard O’Donohoe, will continue to hold a minority stake in the company and are becoming non-executive directors.
Following the deal, PEI plans to accelerate its investment in new product development, enhance its data-led subscription products and extend the reach of its existing portfolio across the EMEA, US and Asian markets.
The deal was transacted by LDC’s London team, led by LDC Investment Director Chris Neale, supported by Investment Director Troy Harris-Speid and Investment Manager Rob Apollo.
Chris Neale said: “PEI has developed a truly market-leading position as an added value provider of market information, analysis and events to leaders of blue chip organisations around the world. It is led by a highly capable management team that has the drive, ambition and incentive to continue developing the business and take advantage of this unique proposition.”
“The long-term growth and professionalisation of the alternative assets industry – driven by expanding numbers of institutions, practitioners and assets under management – creates a favourable backdrop for the further extension of PEI’s brands as well as the development of new insight-led products and services.”
Tim McLoughlin, Chief Executive of PEI Media Group, said: “We’re very pleased to have the support of an investment partner like LDC: it gives us the capital, strategic insight and operational support to help us continue investing in our platforms for the benefit of the markets we serve, while creating new opportunities to help them connect, engage and promote. Together we will be able to go further, faster.”
LDC was advised by Quayle Munro, PwC, Alvarez and Marsal and CMS Cameron McKenna.
The PEI shareholders were advised by Livingstone and Squire Patton Boggs.
Management were advised by Liberty Corporate Finance, Pinsent Masons and PwC.
1. PEI is one of the leading financial media groups dedicated to alternative assets globally. It specialises in providing information, analysis and connection for senior professionals in the alternative asset classes of private equity, real estate, infrastructure, private debt and other, newer emerging classes such as agriculture. Key areas of expertise are the tracking of capital flows into these asset classes and the provision of in-depth editorial coverage of both the holders and managers of this capital.
2. PEI publishes both in print and online, growing communities of senior practitioners wanting in-depth coverage of their specialist markets whilst also helping them connect by convening market-leading conferences across all the key centres for its alternative asset classes.
3. With revenue having grown by 21 per cent CAGR 2012-15 and EBITDA by 52 per cent CAGR in the same period, the company has exhibited very strong growth at a time when other media groups have not. It currently services over 6,000 professional customers in more than 1,500 organisations across 80 countries. It is headquartered in London with full-service regional offices in New York and Hong Kong and employs 150 people.
4. For further information, visit www.ThisisPEI.com
1. LDC is part of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.
2. LDC backs ambitious management teams from UK-based companies seeking up to £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
3. LDC has, since 1981, completed over 485 investments.
4. LDC has a portfolio of 90 businesses across the UK which collectively generates £4bn of revenues and over £400m of profit, and employs in excess of 30,000 people.
5. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
6. LDC has invested £1.6bn into ambitious businesses in the past five years to support their growth.
7. LDC invested over £250m of equity across 16 businesses in 2014. It also continued to support the ‘buy and build’ strategies of our portfolio firms with £28m of additional equity funding for acquisitions during the same period.
8. LDC is the leading private equity company in the UK mid-market. Investments in 2015 include NEC Group, PDG Helicopters, Synexus, SSP, Away Resorts, Aspin Group, Iglu and Seabrooks.
9. LDC has a UK regional network with offices in Aberdeen, Birmingham, Bristol, Leeds, London, Manchester, Nottingham and Reading.
10. For further information, visit www.ldc.co.uk