Increasing the overall supply and diversity of finance and reducing imbalances in access to finance to smaller businesses across the UK, thereby creating more choice and competition in the market, is core to British Business Investments’ strategy.
The recent announcement that British Business Investments has committed £50 million to BOOST&Co’s second fund, Industrial Lending II is a great example of how we make this strategy a reality.
BOOST&Co is an independent asset manager specialising in lending solutions for high-growth SMEs in the UK. During 2019 they have expanded from their London office to open regional offices in Bristol, Cambridge and Manchester.
They offer growth capital and venture debt of £2 million to £10 million to businesses in all sectors, with a focus on software, business services, fintech and cleantech, helping these businesses to deliver on their growth ambitions.
British Business Investments made an investment of £20m in Boost&Co’s first Fund in 2013. We’re delighted that it is now fully invested in 37 high tech and fast-growing smaller businesses.
Boost&Co has matured significantly as an organisation since our first investment, with its team growing from five team members to 15 in the UK now, with additional back-office support in South Africa.
This new Fund will provide additional capital to allow Boost&Co to make further investments. Typical companies invested in are at an early stage in their development and will not have the track record to meet the lending criteria for banks or other traditional lenders. Boost&Co provide a valuable source of finance to fast growing businesses across the UK.
This is an exciting new commitment for British Business Investments, demonstrating how we support managers, over the longer term, in growing their capacity to provide capital to growth orientated UK smaller businesses.
We look forward to following the Fund’s development as it further supports regional lending.
- 2013: Capital for Enterprise, the British Business Bank’s predecessor organisation, made its first debt fund commitment, of £20m, to Boost’s Industrial Lending I Fund
- 2017: Initial commitment increased to £40m, alongside other investors, as part of a total Fund size of £85m
- 2019: British Business Investments commits £50m to a new Fund, Industrial Lending II
Article by: Richard Coldwell, Director, British Business Investments
Learn more about British Business Investments’ Direct Lending Programme.