Beechbrook Capital has raised £151m for the first close of its fourth UK SME credit fund, including a £40m commitment from British Business Investments.
UK SME Credit IV is targeting a fund size of £250m and focuses on non-sponsored, senior secured loans to businesses with EBIDTA of up to £15m.
The private debt fund manager also announced that it has completed the final two investments in its predecessor fund, UK SME Credit III, which raised £185m in total.
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The first was a spectroscopy manufacturer and the second one was brand agency Strata Creative Communications, marking Beechbrook’s 75th investment in the UK since inception in 2008.
“We are excited to announce the first close of our fourth UK SME Credit Fund and the completion of two new investments,” said Paul Shea, managing partner at Beechbrook Capital.
“We are grateful for the continued support from our investors, which demonstrates the significant value in investing in the lower mid-market, both from a commercial perspective but also supporting growth, innovation and job creation throughout the UK.”
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Adam Kelly, managing director at British Business Investments, the commercial arm of the British Business Bank, said: “We are pleased to continue support for Beechbrook with a new commitment to its fourth SME Credit Fund as they work to increase available capital for smaller businesses and support growth across the UK.
“British Business Investments has previously backed Beechbrook’s earlier SME Credit funds with commitments in 2017, 2019 and 2021, and we announced a £20m separately managed account with Beechbrook earlier this year. By backing independent finance providers like Beechbrook we help diversify the UK’s smaller business finance market, providing more choice for businesses.”
