"The launch of Pivotal Growth marks a significant milestone in the implementation of the Group's strategy."
As part of the plan, at least £200m will be made available by way of equity and debt to fund acquisitions. LSL has committed up to £33.5m and PSC up to £62.4m to support the acquisitions to be made by Pivotal Growth.
LSL's chairman, Simon Embley, has been appointed chief executive of Pivotal Growth and will step down from his role on the LSL Board. David Stewart, LSL's CEO, and Ian Gascoigne, partner at PSC, will be directors.
Jane Cross, previously chief risk officer of the Group's Primis network and managing director of its e.surv surveying business, has been appointed chief operating officer. David Copland, previously LSL's director of mortgage services, will be the strategy and business development director.
Pivotal Growth has entered a long-term arrangement with Primis, with all acquired businesses anticipated to become Primis members.
Primis will also act as a platform for the buy-and-build strategy reducing administrative, compliance, payment, technology, and support service costs.
David Stewart, group chief executive of LSL, said: "The launch of Pivotal Growth marks a significant milestone in the implementation of the Group's strategy. It follows other significant recent announcements, including the steps we have taken to strengthen our management team and recent acquisitions of Mortgage Gym and Direct Life & Pension Services.
"LSL is a market leader in the mortgage network market and the provision of financial services to estate agencies. The establishment of the Pivotal Growth joint venture with Pollen Street Capital will enable us to establish a leading position in the provision of direct-to-consumer advice and underpins the pre-eminent position of our Primis network."
Ian Gascoigne, partner at Pollen Street Capital, commented: "We are highly enthusiastic to support Simon Embley and his team in the launch of Pivotal Growth. Pollen Street has an extensive track record of backing successful buy-and-build platforms in UK financial services, most recently with Specialist Risk Group in commercial insurance broking, Kingswood in wealth management, and with foreign exchange platform Foreign Currencies Direct.
"We believe that LSL's unrivalled experience and expertise in the financial and property services markets and Pollen Street's extensive capabilities in investment and business transformation, form the basis for a highly successful partnership. While large and long established, the UK mortgage broking market remains highly fragmented, offering significant potential for synergistic consolidation. We believe that Pivotal Growth has potential to quickly become a market leader, while delivering pioneering levels of innovation and the highest standards of customer service in the industry."
