UK private equity company Cabot Square has completed its £150m sale of small business funder LDF to US alternative investment giant White Oak Global Advisors.
The deal, which was announced in April, has now completed for a 2.8 multiple of Cabots initial investment for a price understood to be £150m.
Read more: LDF snapped up by US giant in "first step" of UK expansion
LDF was acquired by Cabot in 2013 from Investec. It has made £1bn in loans since the acquisition, growing its loan book from £19m to £200m over the period.
Its new owner White Oak Global Advisors struck a deal this week to provide £90m in debt funding to British Steel to help bankroll its turnaround plans.
Cabot Square partner Richard McDougall said: “LDF, and other lenders like it, have played an important role in increasing funding to the overlooked SME sector. It is an area of the market that has really suffered from a shortage of finance since the credit crunch.”
Read more: Challenger bank Aldermore recommends £1.1bn takeover offer from FirstRand
LDF is just the latest challenger lender to be snapped up.
In November challenger bank Aldermore agreed a £1.1bn takeover deal with South African bank First Rand while last summer a private equity consortium acquired Shawbrook bank after a lengthy pursuit.
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