LendingMetrics, the credit risk technology group, has secured a “significant” investment from LDC, the private equity investor which is part of Lloyds Banking Group, to help it scale its presence in the UK’s fast-growing decisioning software and data market.
Founded back in 2010, LendingMetrics’ software and data solutions help hundreds of companies to make highly sophisticated automated and risk-based lending decisions.
Clients reportedly include the following: building societies, online lenders, mortgage companies, credit card providers and commercial lenders.
As well as its Auto Decision Platform (ADP), its software suite includes LendingMetrics Exchange (LMX), a multi-bureau credit referencing product, OpenBankVision (OBV), a bank statement data platform which “helps clients to build accurate affordability profiles in real time, and DeeJoop, a proprietary credit data deduplication tool to standardise high velocity multi-bureau credit files.”
LDC is backing LendingMetrics’ management team, led by co-founders CEO Neil Williams and Commercial Director David Wylie.
LDC’s investment and support will help the business to accelerate product development within its core financial services sector and “expand its network of partners in its consultancy and data services division.”
The backing from LDC will also enable LendingMetrics to explore complementary acquisitions and “diversify its presence in new vertical industries with similar credit risk challenges, such as the telecoms, utilities and insurance markets.”
The transaction was led by LDC Investment Director Oliver Schofield, Investment Manager Vera Kuehne and Partner and Head of South West and Wales Dewi Hughes.
Neil Williams, CEO of LendingMetrics, said that they’re pleased about what we’ve achieved in the last 14 years, the team they have built and of the partnerships they have fostered with clients and partners who have been part of our journey so far.
Williams added that with the support of LDC they can invest for further growth, especially in our R&D team.
Williams also mentioned that having established products such as ADP and launched products such as DeeJoop, their aim is to bring an expanding suite and capability of “risk solutions and data services to more businesses and sectors, while preserving the agility, independence and focus on client value and service that have made us successful to date.”
LDC’s record in backing tech businesses has been solid, and it was the LDC team’s approach to the investment that “made the difference.”
They’re reportedly providing the kind of input they “expected from an experienced investment partner, but they back the as a team to lead the business and pursue our own vision and ambition.”
David Wylie, Commercial Director of LendingMetrics, said that the whole LendingMetrics team are responsible for the reputation they have built in the decisioning technology sector and, with LDC’s backing, they look forward to leveraging their position to “scale the business and identify new market opportunities and partnerships.”
LDC has a track record in the technology sector.
In the last decade, the firm has invested “£715m into fast growing technology businesses, backing management teams to achieve their ambitions.”
LDC’s tech portfolio includes a range of companies such as the followin: cloud-based insurance technology platform Uinsure; database, cloud and applications managed service provider DSP; and leading artificial intelligence-based talent analytics platform Horsefly.
LendingMetrics was advised by Sequence Advisers (corporate finance) and RWK Goodman (legal).
LDC was advised by FRP Corporate Finance (corporate finance), Womble Bond Dickinson (legal), BDO (financial and tax due diligence), Armstrong (commercial due diligence), Coppett Hill (sales due diligence), Alvarez & Marsal (tech due diligence) and Aon (insurance due diligence).
The transaction is “subject to FCA approval.”
