Growth Capital Partners bags £40m to close fourth fund at £205m

UK small businesses from across a range of sectors will be able to seek finance from the fund, which typically invests between £5m and £30m

Growth Capital Partners (GCP), a mid-market investor in UK small businesses, has landed a £40m investment from British Business Bank Investments Ltd (BBBIL) – the commercial arm of the British Business Bank – allowing it to complete the final close of its fourth fund Growth Capital Partners Fund IV LP at £205m.

The fund attracted finance from a range of unnamed UK, European and US investors, including public pension funds, insurance companies and investment management groups. Six new investors joined and 80% of existing investors made further commitments.

GCP focuses on making buy-out and growth capital investments of between £5m and £30m in small UK firms across a range of sectors that are typically valued between £10m and £50m.

The firm says it works in “close partnership with ambitious, like-minded entrepreneurs” to help them take their businesses to the next stage of growth.

Garrett Curran, managing partner of Growth Capital Partners, commented: “We are delighted with the continued support from our existing investors and pleased to welcome new partners such as BBBIL into the Fund.

“Investors were very receptive to GCP’s differentiated strategy in the UK lower middle market, which has generated consistently strong returns since 2000. With four investments already in the portfolio, Fund IV is off to a promising start and we remain committed to investing in UK small businesses – a key driver of the UK economy.”

Catherine Lewis La Torre, CEO of BBBIL, added: “Our participation in GCP’s fourth fund will enable additional capital to be invested in promising UK-based small businesses that require growth capital to scale up successfully.

“GCP’s approach of providing a combination of debt and equity finance meets our objective of promoting greater diversity in the supply of funding solutions for smaller businesses.”

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