Beechbrook Capital raises £67m for latest fund

Mid-tier fund manager set to make several investments to small and medium-sized businesses across UK and Europe

One of Northern Europe’s most active lower mid-market credit fund managers has raised 67m at the first close of its latest fund, Beechbrook Mezzanine II.

Backed by six institutional investors including the European Investment Fund and the UK Department of Business, Innovation and Skills (BIS), the mezzanine finance fund aims to combat the lack of traditional funding available to small and medium enterprises from banks and mainstream institutional lenders.

Founded in 2008 by Nick Fenn and Paul Shea, the London-based firm specialises in supporting small and medium-sized private companies across several industries in the UK and Northern Europe with an estimated worth of 10m to 100m.

With typical investments of 4m to 7m per transaction, the company intends to fill the funding gap between equity and bank debt that lower mid-market businesses often face.

Possessing an existing portfolio of 16 companies across the UK and Ireland, the Nordics, Benelux and German-speaking countries, Beechbrook has already identified a pipeline of opportunities to invest in before the end of 2013.

The company has further pledges of 25m for additional closes later in the year and is set to reach its target fund size of 100m to 120m.

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