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LDC invests in Capital Economics

UK mid-market private equity house LDC is to make a minority investment in Capital Economics, an independent macro-economic research company.

Capital Economics’ output spans global, regional and country research, including coverage of 56 emerging markets, and specialised analysis of financial markets, commodities and the consumer and property sectors, delivered across 23 different subscription services. In addition, it undertakes commissioned research projects.
 
Capital Economics, led by Roger Bootle, was established in 1999, and is headquartered in London. It currently has almost 100 employees, of whom about a half are economists working across offices in London, Toronto and Singapore.
 
As well as the financial aspect, this transaction enables Capital Economics to widen ownership of the shares amongst its staff and to strengthen the management team. After the transaction, the management team will continue to be led by Bootle, who will be executive chairman.
 
Existing CE directors Jonathan Loynes and Julian Jessop will sit on the new board, along with Mark Harris as finance director.   Peter Rigby (formerly chief executive of Informa) will join the company as a non-executive director and Chris Hurley, chief executive of LDC, and Chris Neale, investment director at LDC, will also join the board.
 
CE will now press ahead with the development of new products, including dedicated services on India and each of the major commodity types. It will also examine the possibility of opening further overseas offices.
 
Bootle says: “This is a very exciting development for our business, with LDC’s investment providing a strong platform to enhance our services and extend our geographic reach.  Capital Economics will continue to build on its existing international reputation, based on high quality research products, well written, delivered in a timely way and embodying judgements independently formed and clearly expressed – even if they are profoundly at odds with the prevailing consensus.” 
 
Neale says: “Capital Economics is a fantastic business with a global reputation for the outstanding quality of its research and expert analysis. The rigour, independence and objectivity of the research, which is so highly-valued by clients, will remain at the core of the business strategy going forward. We are delighted to be backing the excellent management team to help the firm accelerate its growth through continued diversification of its products and services and further geographic expansion in global markets.”

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