Beechbrook Capital’s New Fund Gets a Warm Welcome
Beechbrook Capital, the well‑known specialist lender, has just hit a milestone: the first close of its second UK SME Credit Fund with commitments totaling £128 million. The fund’s early movers include two exciting bets – Hosted Desktop UK and Gravity Global – giving the UK’s small and medium businesses a much-needed lift.
What the Fund Is All About
UK SME Credit II is tailor‑made for companies that:
- No more than £100 million in annual turnover
- Turn over at least £10 million
- Enjoy EBITDA of £1 million or higher
The fund’s strategy revolves around senior secured loans for non‑private‑equity backed firms, covering everything from acquisitions to buy‑outs, shareholder shifts, refinancing and general growth plans.
First Two Investments
Hosted Desktop UK – a cloud‑services provider based in Exeter – received its first tranche to help realign the business’s shareholders.
Gravity Global – a London‑based B2B marketing agency – got funding to fuel its ambitious growth strategy.
Investor Mix
UK SME Credit II has attracted a good mix of repeat and new institutional investors, including British Business Investments, the commercial arm of the British Business Bank, which was also part of the first fund.
Voices from the Front
Paul Shea, Beechbrook partner, says, “We’re thrilled with the support from both existing and new investors. The UK lower mid‑market still faces a serious gap in development and expansion finance, and we’ll keep bridging that gap.”
Catherine Lewis La Torre, CEO of British Business Investments, adds, “By joining Beechbrook’s second fund, we can back promising UK‑based SMEs that need growth capital to scale. Their mix of debt and equity really diversifies the funding scene for smaller businesses.”
Flashback: The First Fund
Beechbrook’s inaugural SME Credit Fund raised £152 million and wrapped up in January 2017. Its final investment was in S:CRAFT, a B2B distributor of branded interior plantation shutters, back in December. The flexible debt and equity solution helped senior management take partial ownership through a capital reorganisation.
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