LDC, the private equity arm of Lloyds Banking Group (LLOY), has made a strategic investment in Fortus, a York-headquartered accountancy and business advisory practice, to support its next phase of growth.
Financial terms of the deal were not disclosed by either party following the completion of the transaction.
Founded in 2020, Fortus has grown to employ 115 people across its accountancy, audit, tax, and wider advisory functions.
The firm operates from offices in York, Leeds, and Scarborough, serving a client base of more than 4,500 small and medium-sized businesses across the region.
Fortus has built its reputation helping clients navigate shifting regulatory requirements, positioning itself as a trusted advisor to businesses of varying sizes across Yorkshire.
The new capital injection is intended to fund further recruitment, investment in systems, and to accelerate the company’s buy-and-build acquisition strategy.
Fortus is also targeting an expansion of its service offerings and geographic reach, building on the footprint it has already established across the north of England.
Founder and CEO Craig Herbert, COO Andy Northern, and CMO Rich Burnett will all remain in their current roles and continue to lead the business through its next growth phase.
Herbert said: “This partnership is a culmination of a relationship we have developed with LDC over a number of years.”
The LDC deal team was led by investment manager Anthony West, investment executive Connie Smith, origination manager Sophie Isaacs, and LDC partner and Yorkshire head Dan Smith.
West and Dan Smith will join the Fortus board as non-executive directors following the transaction, with Neil Cox also set to become chair of the board.
Dan Smith said: “Craig, Andy and Rich, along with the wider SLT, have built an exceptional business with genuine momentum and a clear strategy for the next phase.”
Smith added: “They have proved they can integrate acquisitions and drive organic growth, and we are excited to be backing them to continue that journey whilst continuing to deliver high-quality, advisory-led services to their client base.”
LDC’s Yorkshire team has invested more than £400 million ($537 million) across the past decade in companies with a combined enterprise value of £1.1 billion.
The Fortus investment reflects continued appetite from private equity for well-run regional professional services firms with strong client bases and credible growth strategies.
