Private equity investor supports Hull’s The 55 Group

LDC, the private equity investor which is part of Lloyds Banking Group, has made a significant investment in procurement and technology specialist The 55 Group, to support its growth strategy.

The Hull-based Group provides built environment-related software and services to public and private organisations across the UK. Its offering comprises three brands including Pagabo, a procurement platform that connects private and public sector buyers to contractors via bespoke national frameworks, Loop, social value measurement software supporting the construction and infrastructure project lifecycle, and Sypro, a cutting-edge contract and risk management software solution for ongoing project management.

The 55 Group has grown rapidly in recent years following increased demand for digital solutions that support sustainable procurement practices and investment in critical UK infrastructure. It employs more than 90 people and has grown revenue and headcount by over 35% since 2022.

LDC is backing The 55 Group’s existing management team, led by co-founder and CEO Simon Toplass, as it pursues an ambitious growth strategy underpinned by further investment in its technology and services. The Group will also continue to expand its team of experienced professionals which support its clients based across the UK. As part of the transaction, Maven, a UK investor in high-growth businesses, will retain a small shareholding in The 55 Group.

The transaction was led by LDC’s team in Yorkshire, including Partner and Head of Yorkshire Dan Smith, Investment Director Will Scales and Investment Managers Ana-Maria Garaba and Anthony West. David Brennan, highly respected technology entrepreneur and Non-Executive Chairman of business mobility provider Nexus Vehicle Rental, will join the board as Non-Executive Chair.

Simon Toplass, co-founder and CEO of The 55 Group, said: “Our stable of brands are perfectly positioned to support organisations at every stage of the procurement and construction management process, making it easier for both buyers and suppliers of construction services to factor metrics like social value into decision making, which are essential if the entire ecosystem is going to continue to have a positive impact on communities.

“The help of the team at LDC, who have a proven track record of supporting technology and services businesses like ours, will be invaluable as we continue to invest in our offering and take the business to the next level.”