It is the first deal to use capital from the fund, which focuses on investments in businesses with specialist manufacturing capabilities such as aerospace and power generation.

Castle Donington-based PJD Group, founded in 1985 by Peter Douglas, is involved in many activities across the power, environmental and industrial markets and employs 250 staff.

The company will use the investment, the amount of which is undisclosed, to target acquisition as a means of development, following a successful acquisition of Grayton Engineering in 2010.

David Hayle, chief executive of PJD, led a management buy-out of the firm in 2007 with support from debt funding from HSBC Corporate and Structured Banking.

Hayle says, ‘The replacement energy market is worth £110 billion over the next 10 years, so it was important for us to find the right strategic investment partner in LDC.

‘The transaction will help to underpin our overall growth and development strategy as we actively seek to acquire businesses that will complement and enhance our existing service proposition.’

Hayle will remain as chief executive and founder Douglas will continue as a non-executive director. He will be joined on the board by LDC director John Garner, who led the deal.

Garner comments, ‘LDC is fully committed to supporting the growth and expansion of our portfolio companies. In PJD, we are backing a business which is well placed within each of its sectors to deliver strong organic and acquisitive growth.’