BGF (Business Growth Fund), a provider of growth capital to small and mid-sized businesses, is celebrating celebrates five years of growth during which it has invested nearly GBP850 million in a diverse portfolio of more than 125 companies including manufacturers, retailers, technology providers, restaurants and more.
The milestone follows BGF’s strongest ever quarter; BGF invested over GBP100 million in the first three months of 2016 and is on course to pass GBP1 billion in committed investments later this year – a clear signal of the growing demand for this type of support among Britain’s entrepreneurial businesses.
The last five years have seen a steady expansion of BGF’s regional network, which now includes eight offices across the UK, with investors working in close proximity to local business communities and the companies they support.
In the last 12 months, BGF has expanded its reach with the launch of BGF Ventures, the UK’s largest ever venture capital fund focused solely on earlier stage UK tech companies, and BGF Quoted, which offers a new and additional source of capital for smaller UK companies listed on AIM.
Stephen Welton, Chief Executive of BGF, says: “In just five years BGF has established itself as the UK’s most active provider of long term capital to small and medium sized businesses. With a very healthy pipeline I am confident we will pass GBP1 billion later this year.
“BGF was set up to provide funding to hundreds of growing and ambitious companies, not just a select few. With an average initial investment into a company of just GBP6 million, investing a total of GBP850 million in five years is a considerable feat.
“More than the obvious symbolism of such a milestone, we can now show that BGF investment is making a real difference to more and more companies across the country in terms of faster growth, more jobs, new products, new markets, innovation and exporting success. Combined, the companies in our portfolio generate revenues in excess of GBP3 billion and employ more than 22,000 people.
“Above all this is GBP850 million that would not have been invested without BGF, and when you consider the multiplier effect that equity capital has, the overall impact is even greater.
“After five years, I know that the entrepreneurial spirit in the UK is alive and well. BGF’s challenge and that for the economy more generally, is to build on what is working and truly scale-up from here.”
