British Business Investments has increased its commitment to Beechbrook Capital, a direct lender focused on SMEs, with a new £20million separately managed account (SMA), to support SMEs in need of finance across the UK.
British Business Investments, a subsidiary of the British Business Bank, aims to improve access to alternative finance for SMEs across the UK, while supporting the transition to a net zero economy – highlighted by its backing of Beechbrook. Since its launch in 2014, British Business Investments has committed more than £3.8billion to providers of finance to UK smaller businesses.
The SMA will co-invest alongside Beechbrook’s existing, and future, UK-focused funds. The funds support small and medium-sized businesses with turnover of between £10million and £100million, and an EBITDA of £1million and above.
Adam Kelly, managing director at British Business Investments, also said: “We are excited to continue our support for Beechbrook with a new £20million SMA as they provide essential capital to the UK lower mid-market.
“This commitment to Beechbrook will further support UK smaller businesses with the finance they need to grow. British Business Investments has previously backed Beechbrook’s earlier SME Credit funds with commitments in 2017, 2019 and 2021, and we are pleased to continue our partnership.”
The news represents an extension of a longstanding partnership between Beechbrook and British Business Investments. This becomes the sixth fund managed by Beechbrook that British Business Investments has invested in. The additional commitment comes as the two firms celebrate their 10th year of working together, with the team at British Business Investments having initially invested with Beechbrook in 2014.
Backing SMEs across the UK
Leveraging British Business Investments’ support, Beechbrook continues to provide essential financial capital to the underserved smaller business segment of the lower mid-market. Since 2008, Beechbrook has invested over £500million in 70 SMEs across the UK.
Paul Shea, managing partner at Beechbrook, commented: “We are delighted to advance our relationship with British Business Investments through the provision of this tailored managed account. We are committed to investing in the UK lower mid-market, supporting growth, jobs and the Levelling Up agenda. We have a busy pipeline and are looking forward to supporting more high quality management teams to achieve their strategic goals.”
Beechbrook currently maintains a local presence in four major UK cities: London, Manchester, Birmingham and Leeds, and is considering other locations for expansion. These strategic locations allow Beechbrook to develop regional relationships, to gain an edge in origination and to understand better the needs of local businesses.
Beechbrook is currently investing the third fund in the strategy and has recently completed its ninth transaction in Give Me Cosmetics, based in Liverpool, and its tenth in Embrace Steel Group which has operations in North Yorkshire and South Wales. These transactions are a testament to Beechbrook’s expertise, regional focus and local presence.
