LDC sees 3.9x return with MSQ exit

• LDC will reinvest in MSQ as a minority partner alongside OEP
• LDC first invested in MSQ in May 2019
• OEP is a middle market private equity firm based in New York

LDC has sold its investment in MSQ, generating a money multiple return of 3.9x, to One Equity Partners (OEP).

The transaction was valued at £170 million (€198.58 million;$214 million), according to a source close to the matter.

MSQ is an international group of agencies that spans marketing, technology and insight. The company is based in London.

The transaction reflects growth in EBITDA from £6 million to more than £20 million over the past four years, according to a release.

LDC will reinvest in MSQ as a minority partner alongside OEP.

LDC and One Equity will support MSQ in accelerating international growth and building out its data-driven and tech-enabled model, the release said.

“There is still so much more to come for MSQ, and our ongoing investment is testament to that and the quality of the team onboard,” said John Clarke, investment director at LDC.

LDC first invested in MSQ in May 2019.

LDC has supported MSQ’s management team to deliver its organic and acquisitive growth strategy, which has been a key driver in increasing revenues from around £50 million to £125 million, the release added.

MSG has completed five acquisitions during LDC’s investment period and has more than doubled its headcount from 550 to 1,200 people across America, Asia and Europe.

The transaction was led by Clarke, and Jonathan Bell, managing partner, at LDC.

LDC is the private equity arm of Lloyds Banking Group, headquartered in London. The firm has a UK-wide network of regional offices.

OEP, based in New York, is a middle market private equity firm with around $10 billion in assets under management. The firm invests in the industrial, healthcare and technology sectors in North America and Europe.