Lloyds TSB Development Capital (LDC) has backed Ellis Fairbank, an executive recruitment company, in a £19m (€31m) management buy-out.

The current economic slowdown has impacted on the recruitment sector, particularly firms specialising in permanent placement, and Lloyds believes that on a medium to long-term basis there is good value to be gained. The deal also allowed founders Terry Ellis and Stephen Fairbank to walk away from their business they were advised by Andersen Corporate Finance. Banking facilities for the business were provided by The Bank of Scotland.