£100m Small and Medium Business Credit Fund Announced
New Beechbrook Capital Fund will target mid-market companies with turnover of £5m to £50m
Direct lender Beechbrook Capital has announced a new fund aimed at supporting UK small and medium-sized businesses with revenues of between £5m and £50m.
The fund will aim to raise between £100m and £200m before the first scheduled close in October 2015.
In a sector that has traditionally focused on debt funds competing to finance larger buyouts, the new fund will mainly target senior secured loans in non-private equity backed UK companies.
The fund builds on Beechbrook’s existing funds, which invest in British and European private equity backed companies, with an estimated 40,000 UK businesses in its chosen target range.
Beechbrook currently manages two debt funds with combined assets under management of up to €250m, including the €151m Beechbrook Mezzanine II fund which closed in July last year with backing from the European Investment Fund and the British Business Bank.
Beechbrook Capital partner, Paul Shea, commented: “We have received numerous requests for funding of this type from accountants, solicitors and corporate finance advisers around the country, who are acutely aware of the shortage of long-term development and expansion finance currently available to UK small businesses.
“While there are numerous other credit funds in the market, these generally target larger companies. Our two new hires bring unrivalled experience of this market and a wealth of contacts. With them on board, we look forward to playing a constructive role in helping fund the growth of UK mid-market companies.”