LDC makes quick exit from HFS

LDC has sold HFS group, a UK mortgage broker, to US group Capital One Financial Services for £65m, nine months after acquiring the company.

The sale represents an IRR of over 100% for LDC, which invested £15m in a £33.5m MBO in February from founder John Downes.

The Macclesfield-based group provides broking services for secured and unsecured lending, mortgages, insurance and investment products. The business also provides outsourced call management and financial product placement services to the financial intermediary market.

The £30m turnover business which has nearly 350 employees, has grown rapidly over recent years by successfully meeting increasing demand for consumer credit and debt consolidation services.

LDC was advised by Andy Westbrook and Jonathan Bell at Deloitte Corporate Finance in Manchester. LDC’s legal advisors were Peter Halpin and David Williams at Eversheds in Manchester. HFS were advised by John Pickering and Stephen Baker at Grant Thornton in Manchester.