Beechbrook Capital has announced the first close of its new UK SME Credit Fund, with commitments of more than £100m.
The fund will support small and medium-sized businesses in the UK with a turnover of between £10m and £100m and EBITDA of more than £1m.
Among the institutional investors that have made commitments to the new fund are British Business Bank Investments Limited, the commercial arm of the British Business Bank, and the European Investment Fund. With additional investments to the fund already pledged, Beechbrook expects to hold a second close in the second quarter of 2016 with a target fund size of up to £200m.
The UK SME Credit Fund will provide mainly senior secured loans to non private equity-backed businesses to support acquisitions, buy-outs, shareholder re-alignments and general expansion plans. It is estimated there are around 40,000 UK businesses in Beechbrook’s chosen target range.
The fund will provide loans of between £3m and £15m, with the first investment expected to complete this month.
Source: Growth Business UK
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