A fund to support UK small and medium-sized businesses turning over between £10 million and £100 million. Beechbrook is looking to raise between £100 million and £200 million.
The programme will support UK companies with typical enterprise values between £10 million and £100 million. Beechbrook will provide innovative and flexible private debt and equity finance to support these companies' growth plans by financing strategic acquisitions or expansion. It often fills a funding gap faced by SMEs as banks are in many cases less active in this space than they were historically.
Beechbrook Capital is a specialist fund manager providing debt and equity capital to small and medium-sized businesses in northern and western Europe. Beechbrook was established in 2008 with an experienced and international team of investment professionals. The funder has in the region of €250 million of assets under management and has made 26 investments to date.
Beechbrook manages two debt funds with combined assets under management of around €250 million. Its last fund, Beechbrook Mezzanine II fund, closed in July 2014 at €151 million with commitments from the European Investment Fund and the British Business Bank, alongside several leading private sector investors.
Beechbrook Capital's UK SME Credit Fund supports UK small and medium-sized businesses turning over between £10 million and £1000 million. According to Beecbrook, its UK SME programme represents a significant addition to the private credit sector. The fund will target mainly senior secured loans in non-private equity backed UK companies.
The fund builds on the existing funds of Beechbrook, which invest in private equity backed companies. It is estimated there are around 40,000 UK businesses in Beechbrook's chosen target range.
Although there are no specific exclusions cited within the programme guidelines, those wishing to apply are advised to liaise with the funding provider in the first instance to discuss eligibility.
The fund will target mainly senior secured loans in non-private equity backed UK small and medium-sized businesses turning over between £10 million and £100 million.
Beechbrook invests in companies that enjoy strong competitive positions in well-defined niches, offering attractive growth opportunities. They will typically have ambitious management teams that have shown their ability to generate profits and positive cash flows throughout the economic cycle and who are looking for finance to support a buyout, to facilitate organic growth or to fund add-on acquisitions. Beechbrook expects the main shareholders of the businesses it backs to have made, and to maintain, a significant cash investment in their company.
Investee companies usually:
- operate in one of the following industry segments: business services, telecom and media, industrials, consumer and leisure, or healthcare; and
- have their main centre of activity in northern and western Europe (UK, Ireland, the Netherlands, Belgium, Luxembourg, Sweden, Denmark, Finland, Norway, Germany, Austria or Switzerland).
Match funding is not a stipulated requirement of this programme.
Costs associated with eligible projects.