LDC has purchased approximately 20 per cent of the company for a consideration of £27m. As part of the transaction, management shareholders have sold 25 per cent of their original stake in the company, with other shareholders choosing either to retain all their original shares or sell between 25 per cent and 100 per cent.
Philip George, managing director at Commercial First, said: "We are delighted to welcome LDC as a partner in our business and see this as a significant step towards a market flotation in the next three to five years. This is a resounding vote of confidence in the vision shown by the founding management and original investors."
Stephen Johnson, sales and marketing director, added: "The support shown by Lloyds Development Capital in the management team and business model, together with LDC’s expertise as an experienced investor will help us to grow faster, launch even wider products, and further improve our service delivery to intermediaries. We would like to thank our intermediaries and key partners in supporting our vision and helping us to build the market leading business we have today. Rest assured, this investment will herald a period of even greater ambition."
Tim Farazmand of LDC said: "We are backing an extremely capable management team. We look forward to working together to grow and develop the company as it moves towards its flotation plans."
