Key Takeaways
- • The British Business Bank (BBB) has made a cornerstone commitment of up to £59m to Beach Point Capital's fourth UK and Ireland SME direct lending fund, BPC Europe SME DAC.
- • The commitment forms part of a £65.7m first close for the new fund.
- • The investment is expected to lift BBB's total potential commitment to Beach Point Capital to more than £100m, following prior investments of £20m in 2022 and £30m in 2025.
- • The fund will provide loans of £500,000 to £10m to growth-focused UK and Irish SMEs with annual turnover below £25m, with a stated emphasis on Northern Ireland, Scotland and the North of England.
- • The previous fund invested in 26 businesses across all UK nations and regions, according to Beach Point.
Summary
The British Business Bank has made a cornerstone commitment of up to £59m to Beach Point Capital's fourth UK and Ireland SME direct lending fund, BPC Europe SME DAC, according to the firms. The commitment forms part of a £65.7m first close for the vehicle.
The investment builds on the bank's existing relationship with Beach Point. The BBB previously invested £20m in 2022 and £30m in 2025 in the manager's first dedicated UK SME lending fund. The firms said the new commitment is expected to take the BBB's total potential commitment to Beach Point to more than £100m.
The fund 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. It is sector-agnostic, although Beach Point aims to continue its track record of investing in financial services and the digital and technology sectors. According to Beach Point, the previous iteration invested in 26 businesses across all UK nations and regions, with a particular focus on Northern Ireland, Scotland and the north of England.
Adam Kelly, managing director and co-head of funds at the British Business Bank, said the new fund would provide much-needed growth capital to smaller businesses across the UK's nations and regions, particularly where access to finance is more limited. Business Secretary Jonathan Reynolds said the funding would help more businesses access the finance they need to grow, particularly in Northern Ireland, Scotland and the North of England.
The investment builds on the bank's existing relationship with Beach Point. The BBB previously invested £20m in 2022 and £30m in 2025 in the manager's first dedicated UK SME lending fund. The firms said the new commitment is expected to take the BBB's total potential commitment to Beach Point to more than £100m.
The fund 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. It is sector-agnostic, although Beach Point aims to continue its track record of investing in financial services and the digital and technology sectors. According to Beach Point, the previous iteration invested in 26 businesses across all UK nations and regions, with a particular focus on Northern Ireland, Scotland and the north of England.
Adam Kelly, managing director and co-head of funds at the British Business Bank, said the new fund would provide much-needed growth capital to smaller businesses across the UK's nations and regions, particularly where access to finance is more limited. Business Secretary Jonathan Reynolds said the funding would help more businesses access the finance they need to grow, particularly in Northern Ireland, Scotland and the North of England.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.