Beechbrook Capital begins fundraise for €200m private debt fund

Private Debt III will offer individual investments of between €4m and €15m to help small firms with private equity buy-outs

Direct lender Beechbrook Capital has announced fundraising for its third private debt fund, with a target of over €200m for the fund.

Set for a first close in the second quarter of 2016, Private Debt III will provide loans of between €4m and €15m to help small businesses in the UK and Europe conduct private equity buy-outs. It will look to back businesses with annual revenues of between €5m and €100m.

The second fund reached its target of €150m in May 2014 and is on track to be fully invested by the end of its investment period in May 2016. Beechbrook claims to have made 33 investments to date and completed its eighth exit in February 2016.

In January, Beechbrook announced that it had raised £100m in the first close of its UK SME Credit Fund to support non-private equity-backed small and medium businesses with turnover of between £10m to £100m.

Paul Shea, Beechbrook’s managing partner, commented: “Despite increased availability of bank finance we are continuing to find unfulfilled demand for buy-out financing. We continue to strengthen the team and look forward to working with new and existing investors to achieve their goals.”

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