The deal

We’re pleased to have advised LDC, the private investor which is part of Lloyds Banking Group, on its investment in the credit risk technology group, LendingMetrics.

Founded in 2010, LendingMetrics’ software and data solutions help hundreds of companies to make highly sophisticated automated and risk-based lending decisions. Its clients include building societies, online lenders, mortgage companies, credit card providers and commercial lenders.

LDC is backing LendingMetrics’ management team, led by co-founders CEO Neil Williams and Commercial Director David Wylie. With LDC’s investment and strategic support, LendingMetrics will accelerate new product development within its core financial services sector and expand its network of partners in its consultancy and data services division.

It will also explore complementary acquisitions and diversify its presence in new vertical industries with similar credit risk challenges, such as the telecoms, utilities and insurance markets.

Our Bristol-based Corporate Finance team was appointed as lead buy-side adviser to provide hands-on support on all areas of the transaction, building on a relationship that has seen it support LDC on a number of previous transactions.

Led by Partner Tim Spooner, Associate Director Freddie James and Manager Kush Kunwar, the team supported negotiations, helped to structure the transaction, completed an exit review, and managed the deal through to completion, securing a positive result for all parties.

Tim Spooner, Partner at FRP Corporate Finance, said: “FRP is proud to have worked on this significant regional transaction and it has been a pleasure to have supported LDC in forming this exciting partnership with LendingMetrics.

“LendingMetrics is a fantastic fintech business that is disrupting the rapidly evolving credit risk market with cutting edge software and data solution. LDC’s successful track record of backing fast-growing technology businesses leaves us with no doubt that they will only continue to grow in the years ahead.”

Oliver Schofield, Investment Director at LDC, added: “Neil, David and the wider LendingMetrics team have built a highly sophisticated and disruptive technology stack that is at the cutting edge of credit risk technology and has made the business a critical, trusted partner to their clients. We’re excited to be backing the team and helping them to scale in what is a fast-growing and rapidly evolving market.”

LDC was also advised by Womble Bond Dickinson (legal) and BDO (financial and tax due diligence).

The transaction is subject to FCA approval.