Private equity firm LDC, part of Lloyds Banking Group, has announced a significant investment in LendingMetrics, a credit risk technology company. This investment aims to accelerate product development in LendingMetrics' core financial services and expand its consultancy and data services partnerships.

The funding will also allow LendingMetrics to pursue complementary acquisitions and diversify into industries facing similar credit risk challenges, including telecoms, utilities, and insurance. Founded in 2010, LendingMetrics serves a diverse clientele, including building societies, online lenders, and mortgage companies, offering products like an auto decision platform (ADP) and a credit data deduplication tool called DeeJoop.

Neil Williams, co-founder and CEO of LendingMetrics, expressed optimism about the partnership, stating that LDC's support will enhance their growth, particularly in research and development. He emphasized the importance of maintaining their agility and client-focused approach while expanding their suite of risk solutions.

LDC's investment director, Oliver Schofield, praised LendingMetrics for its sophisticated technology stack, which positions it as a trusted partner in the credit risk sector. He expressed excitement about supporting the team in scaling their operations in a rapidly evolving market.

Over the past decade, LDC has invested £715 million in fast-growing technology businesses. The transaction, which is subject to Financial Conduct Authority approval, was led by Schofield, investment manager Vera Kuehne, and regional head Dewi Hughes. LendingMetrics received advisory support from Sequence Advisers and RWK Goodman, while LDC was advised by several firms, including FRP Corporate Finance and Womble Bond Dickinson.

In related news, the winners of the Alternative Credit Awards were recently announced, highlighting various achievements in the private credit sector.