Private equity funder LDC’s Bristol office has invested in a fintech to help it scale its presence in the UK’s rapidly expanding decisioning software and data market.
LDC said the investment in credit risk technology firm LendingMetrics would help it accelerate new product development in its core financial services market while also expanding its network of partners in its consultancy and data services division. 
In addition, LDC’s backing will enable LendingMetrics to explore complementary acquisitions and diversify its presence in new vertical industries with similar credit risk challenges, such as the telecoms, utilities and insurance markets.
Launched in 2010, Fareham, Hampshire-based LendingMetrics’ software and data help hundreds of companies make highly sophisticated automated and risk-based lending decisions.
Its clients include building societies, online lenders, mortgage companies, credit card providers and commercial lenders.
As well as its Auto Decision Platform (ADP), its cloud-based software suite includes LendingMetrics Exchange (LMX), a proprietary multi-bureau credit referencing product, OpenBankVision (OBV), a bank statement data platform which helps clients to build accurate affordability profiles in real time, and DeeJoop, a proprietary credit data deduplication tool to standardise high velocity multi-bureau credit files.
The transaction was led by LDC investment director Oliver Schofield, investment manager Vera Kuehne and partner and head of region Dewi Hughes.
Financial details of the funding have not been disclosed, although LDC described as “significant”. 
LendingMetrics CEO Neil Williams, pictured, above right, with commercial director David Wylie, said: “We’re extremely proud of what we’ve achieved in the last 14 years, the fantastic team we have built and of the great partnership we have fostered with many clients and partners who have been part of our journey so far.
“With the support of LDC we can invest for further growth, especially in our R&D team.
“Having firmly established products such as ADP to be truly industry leading and launched innovative and peerless products such as DeeJoop, our aim is to bring an expanding suite and capability of risk solutions and data services to more businesses and sectors, while preserving the agility, independence and focus on client value and service that have made us successful to date.
“LDC’s track record in backing technology businesses speaks for itself, but it was the team’s approach to the investment that made the difference.
“They’re already providing the kind of strategic input we expected from an experienced investment partner, but they back us as a team to lead the business and pursue our own vision and ambition.” 
LDC investment director Oliver Schofield, pictured, added: “Neil, David and the wider LendingMetrics team have built a highly sophisticated and disruptive technology stack that is at the cutting edge of credit risk technology and has made the business a critical, trusted partner to their clients.
“We’re excited to be backing the team and helping them to scale in what is a fast-growing and rapidly evolving market.”
LDC, part of Lloyds Banking Group, has a successful track record in the tech sector. In the last decade it has invested £715m into fast-growing tech businesses, backing management teams to achieve their ambitions.
Its current technology portfolio includes a diverse range of companies such as the cloud-based insurance technology platform Uinsure, database, cloud and applications managed service provider DSP, and leading artificial intelligence-based talent analytics platform Horsefly.
LendingMetrics was advised by Sequence Advisers (corporate finance) and RWK Goodman (legal).
LDC’s advisors were FRP Corporate Finance (corporate finance), Womble Bond Dickinson (legal), BDO (financial and tax due diligence), Armstrong (commercial due diligence), Coppett Hill (sales due diligence), Alvarez & Marsal (tech due diligence) and Aon (insurance due diligence).
The deal is subject to FCA approval.
