LDC backs MBO of workplace financial education firm

Mid-market private equity house LDC has backed the management buyout of Liverpool-based workplace financial education and benefits firm JPMorgan Invest, which has been re-branded Wealth At

Mid-market private equity house LDC has backed the management buyout of Liverpool-based workplace financial education and benefits firm JPMorgan Invest, which has been re-branded Wealth At Work.
 
Wealth At Work allow employees to maximise the value of their benefits, including linking company share schemes to pensions, income provision for retirees and financial planning for senior executives.
 
Set up in 2005, the business has its head office in Liverpool’s city centre and employs 47 people. Its client base spans a number of sectors and includes major FTSE employers with over 200,000 employees.
 
As part of the transaction, a management team led by chief executive David Cassidy has acquired the company for an undisclosed sum from J.P. Morgan Asset Management.
 
LDC has committed a multi-million pound capital investment to fund the deal and accelerate Wealth At Work’s future growth.
 
The transaction forms a key element of LDC’s strategy to invest GBP250m in 2009 and is the 11th deal completed this year, bringing the total amount of new equity committed to over GBP115m.
 
With LDC’s support, Wealth At Work is expected to have over GBP1bn of assets under management within the next three years and aims to continue growing its employee numbers.
 
Cassidy says: ‘As a fast growing company we are very excited to have the backing of LDC, which will allow us to continuously deliver a superior offering to our clients in the rapidly changing employee benefits marketplace.
 
‘The concept of flexible savings plans incorporating non-pension and pension savings in one place is gaining momentum. Wealth at Work is designed to help employers reduce the risk and cost of their financial benefits provision whilst simultaneously immensely improving the value of those benefits to their employees.
 
‘JPMorgan Invest has built a strong operation which is well placed to capitalise on this growing market. We were looking for an acquirer with a strong reputation and in LDC, Wealth At Work has secured the backing of a major institutional investor with a proven track record in this sector.’
 
The deal was led by Ray Stenton and Catherine Houghton from LDC, both of whom will join the Wealth At Work board.
 
A cross-service line team from Deloitte advised LDC, with Andy Westbrook, Claire Frangou and Sebastian Lomax providing corporate finance advice and Richard Bell and James Bracewell conducting financial due diligence.