Midlands team backs MBO at pensions firm

The Midlands team at private equity firm LDC has backed a management buyout at Ross Trustees, the pensions support services business.

Financial details of the investment are undisclosed.

Ross Trustees was founded in 2010 by Steven Ross and provides professional trustee and pensions support services, as well as pensions manager and secretariat services through its Ross Corporate Services division.

The has since grown to support more than 100 pension schemes, with asset values from £1m to £6bn. The business employs a team of 45. For the financial year that ended March 2020, Ross Trustees recorded revenues in excess of £8m.

The management buyout was led by the existing management team – CEO Nigel Moore, COO Susan Andrews and CBDO Andrew Bradshaw.

LDC’s investment was led by investment directors Phil Hinson and Matt Newbold, LDC head of Midlands Richard Whitwell and investment manager Josh Wachman. Hinson and Whitwell will join the board as non-executive directors.

Nigel Moore, CEO at Ross Trustees, said: “The changing regulatory landscape in the pensions sector, as well as increased corporate activity and business restructuring, is driving demand for our professional trustee services. Partnering with LDC will help the business to grow more rapidly to meet this demand. It will also help us to further expand our products and services as we continue to support more pension schemes and their members.”

Hinson said: “Ross Trustees works with an impressive roster of pension schemes and has established a reputation for the depth and technical expertise of its team and its diverse, modern culture. We have been impressed by the vision that has been set out by Nigel and the management team and look forward to supporting their ambition.”

Banking facilities were provided by HSBC.

LDC was advised by KPMG (corporate finance and tax), BDO (financial due diligence), Armstrong (commercial due diligence), Gateley (legal) and AON (insurance).

Ross Trustees was advised by Cooper Parry (corporate finance) and DWF (legal).