Beechbrook Capital clinches £100m for small business credit fund

UK SME Credit Fund will invest in non private equity backed-small firms with turnover of between £10m and £100m

Direct lender Beechbrook Capital has announced it has secured £100m in the first close of its new UK SME Credit Fund; which it intends to use to support non private equity-backed small and medium businesses with turnover of between £10m to £100m.

The fund, which has secured backing from the European Investment Fund and the commercial arm of the British Business Bank, will provide loans ranging in size from £3m to £15m to help small firms with buy-outs, acquisitions and expansion plans.

Beechbrook will use the fund to build on its existing portfolio, which covers the UK and abroad, and the lender has said it expects to hold a second close in the second quarter of 2016 with a target fund size of up to £200m. It’s estimated that 40,000 UK businesses fit Beechbrook’s chosen target range.

Paul Shea, managing partner of Beechbrook Capital, commented: “The UK SME Credit Fund is a natural evolution for Beechbrook. We are pioneering this type of funding to UK small and medium enterprises.

“We have received numerous requests for it from family and manager-owned businesses around the country, which are acutely aware of the shortage of long-term development and expansion finance currently available. Other credit funds in the market generally target larger companies or focus specifically on private equity-backed buy-outs.”


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