British Business Bank commits £50m to new European fund

Boost to European Capital UK SME Debt LP to help provide debt finance to UK’s small and medium businesses

Government-backed investment programme The British Business Bank has committed £50m to a new European fund, European Capital UK SME Debt LP, to support debt financing to small and medium enterprises in the UK.

The Bank’s £50m boost is to be matched by European Capital Debt Management Limited and its partners to take the total available in the fund to £100m.

Launched by American investment firm European Capital, which has invested over $3.6bn in 100 portfolio companies, the fund will offer debt funding to a range of small and medium firms up to its total amount.

The news follows chancellor George Osborne’s recent announcement of a further £100m for the British Business Bank, and takes the total funds committed by the bank to £198m which it hopes will facilitate up to £1bn of new lending for the UK’s small and medium companies.

Established in 2013, the British Business Bank seeks to encourage lending by supporting a variety of potential finance providers including challenger banks, debt funds, and peer-to-peer lenders.

British Business Bank CEO, Keith Morgan, said:

“We are very pleased to be making this investment, which will deliver substantial additional funding to a much-needed area of small and medium enterpsie financing.

“This is a significant investment, enabling an experienced US non-bank lender to establish a dedicated UK smaller company lending fund, bringing greater choice to the business finance market.”

JC Morales Cortes, European Capital Debt Management Limited director and investment manager of European Capital UK SME Debt LP, continued:

“We are delighted to be partnering with the British Business Bank in our new fund, European Capital UK SME Debt LP. We look forward to providing finance and supporting UK small and medium sized businesses through this fund.”

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