Learndirect

Deal Summary

Catalyst advised the management team on the buy-out of Ufi Limited (learndirect) backed by Lloyds Development Capital (LDC).

learndirect is a strategic provider of basic skills training on behalf of the Skills Funding Agency and delivers over £120 million of funded training each year. This is directed at people with few skills and qualifications, who are unlikely to take part in traditional forms of learning, in order to improve their employment prospects. The business is underpinned by a technology platform that gives learners the freedom to learn at any time, place and pace to release them of the restrictions of classroom based delivered models.

Established in 1998 by University for Industry and the Government, learndirect has grown into a nationally recognised brand for learning with the largest e-learning network of its kind in the world. Until recently, learndirect operated on a not for profit basis and this transaction is the final step in the transition of this business to a commercial organisation that can compete using its key assets of scale, brand and technology to improve the basic skills of people in the UK.

What difference did we make?

Catalyst was introduced to the management team during the early stages of the process to sell the business. Our appointment was a direct result of our experience of advising management teams on buy-outs in the mid-market alongside our credentials in the vocational training sector.

The management team had limited prior experience of private equity and much of our initial work was focused on briefing and advising them on what a buy-out would entail and the likely process. This included all aspects of the deal with a particular focus on deal structures, potential financial returns, the diligence process and key legal terms of the equity documentation.

As the deal progressed, our role included assisting management with preparation of their financial plan and ultimately, we became central to the negotiation of management terms with LDC.