LDC, the UK’s leading mid-market private equity investor, has backed the management buyout of Lakelovers, a leading provider of luxury holiday cottages in the Lake District. The deal value is undisclosed.
Founded in 1977, Lakelovers is a property management and lettings agency specialising in premium holiday cottages across the Lake District. Headquartered in Windermere, the business manages more than 500 holiday properties, providing an end-to-end property management service that includes marketing, maintenance and bookings support, alongside bespoke legal, financial and regulatory advice, through its network of high-street branches.
The management buyout was led by CEO Paul Liddell who has overseen the growth of Lakelovers since acquiring the business in 2000. Since then, Lakelovers has successfully built a reputation for managing and letting premium holiday cottages in sought-after locations across the Lake District, and now accommodates thousands of new and repeat customers every year.
LDC’s investment will help to drive the business forward, providing the capital to launch an acquisition trail that will drive scale across the Lakelovers portfolio and helping the business to capitalise on the growing trend for ‘staycations’. In 2016 Visit England reported 6.9m Britons were planning an overnight stay in the UK, up from 5.1m in 2015, whilst the latest ONS statistics also show record levels of overseas tourism with 37.6m overseas visitors spending a total of £22.5bn during 2016.
Paul Liddell, CEO of Lakelovers, said: “Our business is founded on trust and a genuine understanding of the region’s tourism sector and it is the strength of our relationships with homeowners, combined with a focus on quality and service that has underpinned our growth journey to date. Whilst these factors remain at the heart of our strategy, the new partnership with LDC will provide the financial firepower and strategic support needed to further scale the business. With strong credentials in the UK travel sector and a track record for partnering with management teams to drive growth, LDC is the ideal partner to help us to unlock the potential of our business and kick-start the next phase of our growth strategy in earnest.”
The deal was led by investment directors Simon Braham, John Clarke and senior director Ged Gould. Braham and Gould will join the board as non-executive directors alongside Gary Fletcher. Fletcher, former CEO of Forest Holidays, has more than 20 years’ experience supporting the growth of UK-focused travel businesses and is currently the non-executive chairman of LDC-backed holiday park operator Away Resorts and non-executive director of Forest Holidays.
Ged Gould, senior director at LDC, said: “With a focused proposition, a commitment to quality and service and a CEO that has more than 30 years’ experience in the local property market, Lakelovers has established itself as the pre-eminent provider of premium holiday cottages in the Lake District. Under Paul’s leadership, the business has developed a scalable business model that not only enables property owners to realise the full potential of their holiday home, but firmly lays foundations for future growth.
“More than 18 million people visit the Lake District every year and this is only set to increase since the region was named a UNESCO World Heritage Site in July. We’re looking forward to working with Paul to help capitalise on the growth opportunity both organically and through acquisitions, in what is a highly competitive market.”
The deal marks the fifth investment for LDC’s North West team in 2017, with more than £75m of equity invested during the period. It follows the management buyout of construction, contracting and housebuilding software specialist Eque2, the management buyout of Hill Biscuits, the management buyout of Fishawack, the specialist provider of scientific communications service, and its multi-million-pound investment in ChargePoint Technology, the manufacturer of specialist high containment and sterile transfer valves for the pharmaceutical and biotech industry.