BGF invested record £50m in UK businesses in January 2016

Record month for equity fund sees it make sixth exit to date alongside investments into Castleton Technology and Grace Cole

The Business Growth Fund (BGF) has reported a record level of investment in UK businesses with £50m of funding invested in January alone.

Launched in 2011 with £2.5bn in funding from Barclays, HSBC, Lloyds, RBS and Standard Chartered, the BGF typically invests between £2m and £10m into growing UK businesses for a minority equity stake and board seat.

Notable investments in January included participation in a £4.5m funding round for Sutton Coldfield-based software firm Castleton Technology and a multi-million pound investment into Cheshire-based bath and beauty brand Grace Cole.

January also saw BGF’s sixth exit to date from plastic and pulp packaging manufacturer Plastique, which it sold to Illinois-based packaging company TEQ.

In 2015, BGF launched BGF Ventures; a £200m fund for UK technology start-ups headed up by former LOVEFiLM boss Simon Calver. The fund has made three investments since launch, including a $30m funding round for London-based cloud technology specialist NewVoiceMedia.

BGF expects to make up to 50 investments in 2016 and will target both private and AIM-listed companies with revenues of between £5m and £10m that have valuable intellectual property.

Find out more about the Business Growth Fund and how you could secure investment from the fund by visiting our dedicated investor directory here.

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