LDC Invests in Fortus for Accountancy Growth

LDC, the private equity arm of Lloyds Banking Group, has committed capital to Fortus, a prominent Yorkshire-based firm of accountants and business advisors. This strategic investment is earmarked to fuel Fortus's ambitious expansion strategy, focusing on both organic growth and a continued buy-and-build approach to broaden its service offerings and geographical reach.

The deal sees LDC partnering with Fortus's established leadership team, including Founder and CEO Craig Herbert, COO Andy Northern, and CMO Rich Burnett, all of whom will retain their executive positions. This collaboration aims to bolster Fortus's capabilities through enhanced investment in its personnel and operational systems, thereby expanding the scope of advisory services available to its extensive client base of over 4,500 small and medium-sized enterprises (SMEs) across the region.

Fortus, founded in 2020, has rapidly carved out a niche by emphasizing client relationships, service excellence, and a strong internal culture. The firm's multidisciplinary team delivers specialized advice across accountancy, audit, tax, and other advisory functions. Its track record includes five successful acquisitions in the past five years, underscoring a proven ability to integrate and grow through strategic M&A, a key factor that likely attracted LDC.

The professional services sector, particularly accounting and advisory, is experiencing significant consolidation. Firms are increasingly seeking scale to navigate complex regulatory environments and meet the evolving demands of businesses. Fortus's buy-and-build strategy aligns with this trend, aiming to create a dominant regional player. The UK accounting market alone is valued in the tens of billions, with advisory services representing a substantial and growing segment.

LDC's involvement, led by Investment Manager Anthony West and Partner and Head of Yorkshire Dan Smith, signifies confidence in Fortus's management and market position. West and Smith are set to join the Fortus board as Non-Executive Directors, alongside Neil Cox, who will serve as Chair, bringing valuable private equity and M&A expertise in the professional services domain. This governance structure is designed to support and guide Fortus's next growth phase.

This investment by LDC, which has a strong history of backing regional businesses in Yorkshire, including notable past investments in companies like BCIS, UniHomes, Pagabo Group, and Lomond, highlights the firm's commitment to supporting ambitious management teams. LDC's prior investments in the region total over £400 million, demonstrating a deep understanding of the local economic ecosystem and a successful strategy for driving value creation through partnerships.