Law firm Keoghs sells stake to PE firm LDC
NORTH West law firm Keoghs has become the first in the region to sell a stake to a private equity investor, after winning regulatory approval for a deal with LDC.
The Bolton firm is an insurance claims specialist, with 1,200 staff based near the Reebok Stadium, in Manchester and in Coventry. It has sold 22.5% of its shares to LDC.
Keoghs said the involvement of LDC would enable it to continue investing in its people, processes and technology infrastructure while providing capital for potential strategic acquisitions to add complementary services and scale to its operation.
John Whittle, chief executive of Keoghs, said: “This is an important stage in our development. Securing the support of a long-term investor like LDC enables us to accelerate our growth strategy and invest significantly for the benefit of our clients, ensuring we’re able to meet the sector’s complex, evolving requirements and improve outcomes.”
John Garner, director of LDC, said: “Keoghs occupies a position of real strength in the defendant insurance sector, with a well-earned reputation for quality and cost effective service. We’re excited about the opportunity to support the firm’s continued expansion and development as an ABS in an evolving and growing market.”
The deal, which is due to complete on November 9, follows the approval of its application to the Solicitors Regulatory Authority (SRA) to become an Alternative Business Structure (ABS), which enables legal services firms to accept external shareholders.
Keoghs, founded in Bolton 44 years ago, acts for over 60 insurers, government and public sector bodies, and large corporates, handling around 40,000 claims per year.
