New fund offers investors access to emerging asset class, lending to small and mid-sized companies in the UK, including the North West
British Business Bank Investments Limited, the commercial arm of the government-owned British Business Bank, has invested £30 million as part of its Investment Programme.
Muzinich & Co, an institutional asset manager specialising in corporate credit announced the first closing of its UK Private Debt Fund. The fund, which is a closed-ended vehicle with a 10-year investment term, has commitments from six institutional investors, including four major UK pension funds.
The first fund is targeting £350 million in assets and will lend to UK companies with an EBITDA of between £3 million and £20 million at the time of investment.
Muzinich & Co expanded into the North West of England in October 2015 with the opening of a Manchester office – its eighth office globally – whose primary purpose is to offer growth capital to mid-sized companies located in the UK’s industrial heartland outside London and the South East.
Commercial Secretary at the Treasury, Lord O’Neill, said:
“This new fund is further evidence of the momentum behind the Northern Powerhouse which is increasingly on the radar for investors from around the world.
“Alternative sources of finance like this fund are crucial to help northern businesses expand and create new jobs, which is at the heart of our plans to rebalance the economy.”
Peter Wilson, CEO of British Business Bank Investments Limited, added:
“We made an early commitment to support the development of the fund and are delighted that Muzinich has achieved such a successful first close. Its investment in a team at the heart of the Northern Powerhouse not only fits with our aim of developing new and diverse sources of debt finance for UK small and medium-sized companies but also gives Muzinich an edge in securing attractive lending opportunities beyond the South East.”.
The fund will be run by co-heads Kirsten Bode and Marc Shirman. Bode is based in London and Shirman in Manchester.
“More than 50% of private debt lending opportunities come from outside the South East. The opening of the Manchester office demonstrates our commitment to creating a fund that genuinely targets the whole of the UK,” said Muzinich Managing Director Josh Hughes..
Cllr Kieran Quinn, Chair of the Greater Manchester Pension Fund, one of the launch investors, said:
“Pension funds have traditionally acquired exposure to fixed interest through traded corporate bond funds. In the current market, private debt funds such as this offer attractive target returns, and the closed-ended structure reduces market risk. But of course, in private debt, strong bottom-up credit analysis is essential, and this is an area in which we expect Muzinich to deliver.”.
Muzinich Chief Executive and Chairman George Muzinich said:
“This is part of a longer-term commitment to providing growth financing to middle-market companies in Europe. Muzinich has already launched private debt funds in Italy, Spain and France. “.
For further information:
Muzinich & Co
Josh Hughes, Muzinich
Martin Stott, Bulletin
0845 075 0086
British Business Bank Investments Limited
Michael Lynch, British Business Bank
Nick Taylor, Seven Hills
020 7199 6185
NOTES TO EDITORS
Muzinich & Co was founded as a privately owned company in New York in 1988. It currently manages $24 billion across a variety of strategies in corporate credit. In addition to Manchester and London, the firm has offices in New York, Paris, Cologne, Madrid, Milan, and Zurich.
British Business Bank Investments Ltd is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank. It aims to earn a commercial return by investing through providers of finance to smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government.
It is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.BACK
29th October 2018Autumn Budget 2018
23rd October 2018British Business Investments – Full year results for the period ending 31 March 2018
23rd October 2018British Business Investments Annual Report 2018
2nd October 2018British Business Investments makes £25m Tier 2 investment in Secure Trust Bank PLC
1st October 2018British Business Investments launches new £100m programme to support regional angel investment
1st October 2018Catherine Lewis La Torre appointed CEO of British Business Bank’s commercial patient capital activities
27th June 2018British Business Investments commits £31.15m to IQ Capital Fund III to support deep tech companies
16th May 2018British Business Investments provides £12m to asset finance specialist Universal Leasing Ltd
15th May 2018British Business Investments launches new £500m programme to increase access to patient capital
3rd May 2018Growth Capital firm Oxx announces first close of debut fund with commitment from British Business Investments
17th April 2018British Business Investments commits to Dawn Capital’s new venture capital fund
11th April 2018British Business Investments provides new finance facility to Liberis
28th February 2018British Business Investment commits £20m to new venture capital model from Kindred Capital
6th February 2018British Business Investments commits to a £30m boost for smaller businesses
22nd December 2017British Business Investment’s latest commitment boosts regional finance options for UK smaller businesses
11th December 2017British Business Investments commits £30 million at the first close of Shard Credit Partners first direct lending fund
4th December 2017British Business Investments and IGF to increase SME funding with new cash injection
30th November 2017British Business Investments commits £15m to Balderton’s new $375m fund
24th November 2017Budget 2017
23rd November 2017News from our partners – Seedcamp celebrates 10 year anniversary with £41M first close seed fund to invest in next generation of European entrepreneurs
16th November 2017British Business Investments commits £20m to £100m FPE Capital fund
16th November 2017Catherine Lewis La Torre at this year’s BVCA Summit
21st September 2017BRITISH BUSINESS INVESTMENTS – FULL YEAR RESULTS FOR THE PERIOD ENDING 31 MARCH 2017
21st September 2017VIEW OUR ANNUAL REPORT FOR 2016-17
3rd August 2017British Business Bank Investments Ltd commits €40 million in first closing for Harbert European Growth Capital Fund II.
10th July 2017GCP caps a successful year with a £40m investment from British Business Bank Investments Ltd to complete the final close of Fund IV at £205m
29th June 2017BOOST&Co Limited secures additional £20m commitment from British Business Bank Investments Ltd for its Industrial Lending 1 fund
21st June 2017Atom bank secures £30m Tier 2 capital facility from British Business Bank Investments Ltd
21st April 2017British Business Bank Investments Ltd provides £6.6m of funding to Shire Leasing to boost asset finance for smaller businesses
2nd February 2017Beechbrook Capital closes £150m UK SME Credit I and backs two more businesses
18th January 2017British Business Bank Investments Ltd makes £400m from Autumn Statement available to venture capital funds
5th January 2017British Business Bank expands partnership with Funding Circle
8th November 2016British Business Bank Investments Ltd announces £10m commitment to new £260m technology fund
20th September 2016British Business Bank Investments Ltd – Full Year results for the period end 31 March 2016
20th September 2016View our Annual Report for FY2015-16
13th September 2016British Business Bank Investments Ltd commits £18m to northwest-based asset finance provider, enabling a £36m boost to smaller business growth
3rd August 2016British Business Bank Investments Ltd partner Beechbrook Capital holds first close on latest private debt fund
20th July 2016British Business Bank Investments Ltd provides £16.5m line to Northwest asset finance provider Kingsway under new expansion capital initiative
16th June 2016British Business Bank Investments Ltd names Catherine Lewis La Torre as Chief Executive Officer
17th May 2016British Business Bank Investments Ltd invests in Frog Capital II
14th April 2016British Business Bank Investments Ltd invests £30 million in first close of CORDET Direct Lending fund
31st March 2016British Business Bank Investments Ltd invests in Atlantic Bridge III, a new €140 million fund for Technology companies
22nd March 2016British Business Bank Investments Limited partners with Liberis to support funding for smaller UK businesses
10th March 2016British Business Bank Investments Limited publishes half year results for the six months ended 30 Sept 2015
22nd February 2016View our annual report for FY 2014-2015
19th February 2016British Business Bank Investments agrees £25m facility with Haydock Finance
19th January 2016British Business Bank Investments Ltd invests in new UK Private Debt Fund from Muzinich & Co
19th January 2016British Business Bank Investments Ltd – Annual Results and publication of 2015 Annual Report and Accounts
4th January 2016British Business Bank Investments Ltd-supported Beechbrook Capital’s inaugural UK SME Credit Fund holds first close at more than £100m
29th October 2015British Business Bank’s commercial arm supports UK SMEs with investment in Shawbrook Bank
17th September 2015British Business Bank’s VC Catalyst Fund invests in Nauta
27th March 2015British Business Bank Investments Limited makes €6m clean technology investment
2nd February 2015British Business Bank Investments backs Northwest asset finance provider with £5m investment, introduces new expansion capital initiative
31st October 2014£80 million boost for leasing finance as British Business Bank focuses on alternative lending for smaller businesses
24th September 2014British Business Bank partner BMS Finance provides debt finance to Whittle, one of the UK’s leading commercial painting contractors
2nd September 2014British Business Bank boosts European Capital UK SME fund to £100m to help provide debt finance to UK’s smaller businesses
6th August 2014Making Britain the global centre of financial innovation – £100m extra for British Business Bank Investment Programme
25th February 2014New £40m investment by British Business Bank to support £450m of lending to smaller businesses