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Beechbrook Capital partners with British Business Investments for new £20m SMA

08 May 2024

British Business Investments Ltd has increased its commitment to Beechbrook Capital LLP (“Beechbrook”) with a new £20 million separately managed account (“SMA”).

British Business Investments, a wholly owned commercial subsidiary of the British Business Bank, aims to improve access to alternative finance for smaller businesses across the UK, while supporting the transition to a net zero economy. Since it was established in 2014, British Business Investments has committed more than £3.8 billion to providers of finance to UK smaller businesses.

The SMA will co-invest alongside Beechbrook’s existing, and future, UK-focused funds. The funds support small and medium-sized businesses with turnover of between £10m and £100m, and an EBITDA of £1m and above. They provide predominantly senior secured loans to private, non-sponsored companies to support acquisitions, buy-outs, shareholder re-alignments, re-financings, and general expansion plans.

Beechbrook has built a longstanding partnership with British Business Investments; it is the sixth fund managed by Beechbrook that British Business Investments has invested in. The additional commitment comes as the two firms celebrate their 10th year of working together, with the team at British Business Investments having initially invested with Beechbrook in 2014.

Leveraging British Business Investments’ support, Beechbrook continues to provide essential financial capital to the underserved smaller business segment of the lower mid-market. Since 2008, Beechbrook has invested more than £0.5bn in 70 companies across the UK.

Beechbrook currently maintains a local presence in four major UK cities: London, Manchester, Birmingham and Leeds, and is considering other locations for expansion. These strategic locations allow Beechbrook to develop regional relationships, to gain an edge in origination and to understand better the needs of local businesses.

Beechbrook is currently investing the third fund in the strategy and has recently completed its ninth transaction in Give Me Cosmetics, based in Liverpool, and its tenth in Embrace Steel Group which has operations in North Yorkshire and South Wales. These transactions are a testament to Beechbrook’s expertise, regional focus and local presence.

Paul Shea, Managing Partner, Beechbrook, said:

“We are delighted to advance our relationship with British Business Investments through the provision of this tailored managed account. We are committed to investing in the UK lower mid-market, supporting growth, jobs and the Levelling Up agenda. We have a busy pipeline and are looking forward to supporting more high quality management teams to achieve their strategic goals.”

Adam Kelly, Managing Director, British Business Investments, said:

“We are excited to continue our support for Beechbrook with a new £20m SMA as they provide essential capital to the UK lower mid-market. This commitment to Beechbrook will further support UK smaller businesses with the finance they need to grow. British Business Investments has previously backed Beechbrook’s earlier SME Credit funds with commitments in 2017, 2019 and 2021, and we are pleased to continue our partnership.”

Beechbrook Capital