Mid-market private equity firm Bowmark Capital has backed the £48 million management buy-out of lettings and property agency Leaders Limited from property concern RO Group.

Bowmark is investing £21.2 million of equity for a significant majority interest in the company. Lloyds TSB and RBS are leading a £14 million senior debt facility, while an additional £12 million of further equity and debt funding is being made available for future acquisitions.

Leaders has 42 branches across the south of England, managing more than 15,000 properties for around 13,000 landlords and has acquired 31 businesses over the past five years. Since 2005 revenue has grown by 28 per cent per annum and currently stands at around £25 million.

Bowmark partner Mark Salter says: ‘There are an estimated 8,500 lettings branches across the UK, the majority of which are small, independent agencies, and the Leaders management team has a strong track record of transacting and assimilating acquisitions.’