Specialist lender closes its first fund for UK SMEs

A lender that specialises in providing debt and equity capital to small and medium-sized businesses has closed its first fund for UK SMEs.

Beechbrook Capital has raised £150 million for the Beechbrook Capital UK SME Credit I fund, with the fund being supported by investors from the UK, continental Europe and America, and the final close being backed by new and existing investors.

Support

The fund has been created to support SMEs in the UK with a turnover of between £10 million and £100 million, in addition to earnings before interest, tax, depreciation and amortisation of over £1 million.

Amongst the businesses to commit to the fund is British Business Bank Investments Ltd, which has supported Beechbrook Capital and its management team for a number of years through an investment programme.

Beechbrook Capital now has plans to open the lender’s first regional office in Manchester to enable it to tackle the funding demands of SMEs in the UK, with the office being scheduled to open in the first half of 2017.

Opportunities

Beechbrook Capital Managing Partner Nick Fenn stated: “We are delighted that investors continue to see the attractiveness of high-quality investment opportunities among UK SMEs, where we see a continuing shortage of long-term development and expansion finance.”

British Business Bank Investments Ltd Chief Executive Officer Catherine Lewis La Torre said: “In line with our aim to support diverse debt finance markets, we are pleased to be participating in the latest round of Beechbrook’s UK SME Credit fund.”

She added: “The new fund’s focus will help address the well-recognised funding gap for loans between £3 million and £15 million.”