Investment strategy

• Beechbrook currently sees good value for investors in the provision of capital to small and medium sized businesses. The retreat of commercial banks from this traditional area of lending has exposed extensive, unserviced demand for fresh debt and equity.
• Beechbrook originates new mezzanine loans and equity co-investments across northern Europe, utilising its extensive range of private equity and corporate finance contacts. We seek to control our holdings by investing bilaterally or in concert with a co-investor that we are close to.
• Investee companies tend to have strong competitive positions in a well-defined niche, with attractive growth opportunities. We look for management teams that have shown their ability to continue to generate profits and positive cash flows through the economic downturn.
• We look to the main shareholders of the business to maintain a significant equity commitment to the businesses we back and do not burden investees with debt levels that cannot be serviced comfortably.
• We take a flexible approach to pricing our investments, adapting the different components of our returns (cash interest, PIK interest and equity kickers) to the investee's profile.