European Capital Debt Management (ECDM) has closed its new GBP100 million fund, European Capital UK SME Debt LP, a fund to provide debt finance in small and medium sized enterprises in the UK.
The fund will invest in businesses with a turnover of up to GBP100 million.
The British Business Bank is committing GBP50 million to the fund under the British Business Bank Investment Programme.
The remaining GBP50 million is being committed by European Capital Limited and its affiliates.
"We are delighted to announce the closing of our new fund, European Capital UK SME Debt LP," says Juan Carlos Morales Cortes, director. "We look forward to providing finance and supporting UK small and medium sized businesses through this fund."
Keith Morgan, chief executive, British Business Bank, says: "We are very pleased to be making this investment, which will deliver substantial additional funding to a much-needed area of SME financing. This is a significant investment, enabling an experienced US non-bank lender to establish a dedicated UK smaller company lending fund, bringing greater choice to the business finance market."
