Lloyds to take minority stake in defendant firm after SRA approves ABS application


Whittle: important stage in our development

Leading defendant law firm Keoghs has secured “significant investment” from  mid-market private equity investor LDC, which is part of Lloyds Banking Group.

The investment, which is due to formally complete on 9 November, follows the approval of its application to the Solicitors Regulatory Authority to become an alternative business structure (ABS). LDC is investing for a minority 22.5% shareholding in the company.

Keoghs, which was originally founded in Bolton 44 years ago, combines its legal and insurance expertise with market-leading processes and technology to defend and process a wide range of claims.

It is the only top 100 law firm to exclusively focus on defendant insurance work, and currently acts for over 60 insurers, government and public sector bodies, and large corporates, handling around 40,000 claims per year. The firm employs over 1,200 people across offices in Bolton, Coventry and Manchester.

Keoghs said the involvement of LDC would enable it to continue investing in its people, processes and technology infrastructure, while providing capital for potential strategic acquisitions to add complementary services and scale to its operation.

Chief executive John Whittle said: “This is an important stage in our development. Securing the support of a long-term investor like LDC enables us to accelerate our growth strategy and invest significantly for the benefit of our clients, ensuring we’re able to meet the sector’s complex, evolving requirements and improve outcomes.”

John Garner, director of LDC, said: “Keoghs occupies a position of real strength in the defendant insurance sector, with a well-earned reputation for quality and cost effective service. We’re excited about the opportunity to support the firm’s continued expansion and development as an ABS in an evolving and growing market.”

LDC typically backs “ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions”.

 

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