LONDON (Reuters) - The private equity arm of Lloyds Banking Group is targeting a record 400 million pounds worth of deals this year, extending one of the last bank-owned buyout firm's reach into the UK market.

Lloyds Development Corporation (LDC) has already splashed out more than 200 million pounds this year across 12 deals including Indian tonic water brand Fever-Tree and security bollard manufacturer ATG Access, a success rate that equates to one in every 13 UK buyouts completed so far.

LDC, which backs medium-sized companies, typically with between 2 million and 100 million pounds in equity, is now looking to break a spending record for new investment set in 2011 when it spent 360 million pounds.

Unlike rivals, which have cut the number of deals struck since the financial crisis, the firm has ploughed on with dealmaking to take advantage of what it says are low prices and a rise in the number of management teams looking for an exit.

"We would do more deals if we could. Some of our best returns have come from investing during the downturn," Chris Hurley, one of the firm's regional managing directors, told Reuters.

Lloyds had once been tipped to spin-off LDC, following rivals like HSBC and Barclays in exiting their private equity businesses, as part of a broader plan to shed riskier assets and shore up a balance sheet damaged by the financial crisis.

But LDC remains a core part of the bank - in 2011 it handed the parent 136 million pounds in profits, up from 69 million pounds in 2010.

While competitors have to battle with raising funds from external investors, restricting the number, size and timing of doing deals, LDC raises all its equity from its banking parent.

In the past, this has irked rivals who claim it can be difficult to compete, particularly if LDC has access to cheaper equity funding from its parent, although the firm goes to the market for its debt finance. Hurley disputes this and says LDC is judged on its returns just like any other firm.

Four-fifths of its activity this year has been sealed via its regional offices outside of London, but LDC is keen to spot - and win - more opportunities from Lloyds' vast branch network, which currently serves up just a handful of deals each year.

Once a company is under LDC ownership, Lloyds can also pick up lucrative traditional banking business like providing loans at a time when British banks have been criticised for not lending enough to small and medium sized enterprises (SMEs).

Investec Sell 67.46 50.00 65.00 Retains

12 month+ high @67.42p.

On edit - high was 67.80p.

UK to rebuff private equity, overseas funds in Lloyds sale - sources

LONDON | Fri Jul 12, 2013 4:53pm BST

(Reuters) - Britain will start selling its shares in Lloyds Banking Group to pension funds and insurers later this year, rejecting interest from private equity and sovereign wealth funds, industry and political sources said.

The government could sell up to a quarter of its 39 percent stake as early as September, the sources said, especially if the bank's first-half results, due in August, are well received.

Did I see it briefly touch 69p!!!

I'm 29% up now - something I didn't think I'd see this year.

We might even see 70p this week at this rate, God willing & a fair wind!

shorts being well and truly burned today!

A 'leap of faith' to @80p?

Why not £1?

Patience! :-)

Am I right in saying though, that the gap has already been filled historically? How many times can you fill a gap?

Gap looks to me as if it's only been half filled think theoretically it has to fill whole gap. Fingers crossed

It hasn't been filled.

Ah, I see. Missed by a gnat's todger! 80p it is then! :o)

so we are looking at a sp of 85-90p

Let's go for your quid! :-)

Joking apart, I'm going to sell some if this rise continues as they are now one of my biggest holdings.

Flippin' heck, now it's 90p target??? Pushing our luck a bit, n'est-ce pas?

still 2 weeks before results due, keep the faith, and screw the shorters!

£1 by Christmas!