British Business Bank makes up to £59m commitment to Beach Point Capital UK
The British Business Bank (the “Bank”) has made a cornerstone commitment of up to £59m to Beach Point’s new fund, BPC Europe SME DAC (the “Fund”), the fourth fund in Beach Point’s UK and Ireland SME direct lending strategy, as part of a £65.7m first close.
The commitment follows the Bank’s previous investments of £20m in 2022 and £30m in 2025 into Beach Point’s first dedicated UK SME lending fund, taking the Bank’s total potential commitment to Beach Point to an amount expected to exceed £100m. The new Fund will continue with this strategy by seeking to provide additional lending capacity and growth capital for ambitious businesses across the UK and Ireland. It will offer flexible senior debt to companies seeking capital to invest, expand, make acquisitions and create jobs.
The Fund has been anchored at first close by British Business Bank and will target growth-focused businesses with annual turnover of less than £25m, providing loans of between £500,000 and £10m to SMEs across the UK and Ireland.
Beach Point’s previous UK SME lending fund has invested in 26 businesses across all UK Nations and regions, with a particular focus on Northern Ireland, Scotland and the North of England. The predecessor fund has provided flexible debt financing to support business growth, investment, employment and economic expansion across communities throughout the UK. While the new Fund will be sector agnostic, it is expected to continue Beach Point’s historical track record of investing in businesses operating in the Digital and Technologies and Financial Services sectors.
Business secretary Jonathan Reynolds said, “Small businesses are at the heart of our communities, creating jobs and driving growth. This new funding will help more of them access the finance they need to grow, particularly in areas like Northern Ireland, Scotland and the North of England.
“Our mission is to deliver growth in every postcode and we want every business, wherever they are based, to have the tools they need to succeed.”
Adam Kelly, managing director and co-head of funds, British Business Bank, said, “By building further on our strong partnership with Beach Point Capital, this new fund will provide much-needed growth capital to smaller businesses across the UK’s Nations and regions, particularly in areas where access to finance can be more limited. By providing ambitious companies with the flexible finance they need to invest, expand and create jobs, we can help unlock local economic potential and support growth in communities across the UK.”
Shane Lanigan, portfolio manager and head of European lending solutions, Beach Point Capital UK, said, “We are delighted with British Business Bank’s continued support and its recognition of the important stimulus our strategy can bring to local and regional growth. The challenge is not simply to generate growth, but sustainable, productive and broadly distributed growth. Viable SMEs with the ambition and capacity to scale are exceptionally important to that process. By providing flexible capital at critical points in their development, we can help businesses invest, expand and create employment in the communities in which they operate.”