Key Takeaways
- • The British Business Bank committed £40m to the first close of Harwood Private Capital UK Fund II, which has secured £120m in total commitments across its debt facility and co-investment vehicles.
- • The commitment takes the British Business Bank's total exposure to Harwood to £75m, following its £35m investment in the lender's first fund, HPC UK SME Fund, in 2020.
- • Harwood Private Capital, the credit arm of Harwood Capital Management, targets smaller and lower mid-market UK private companies for expansion, acquisitions and shareholder transitions.
- • Adam Kelly, managing director for debt and regional funds at the British Business Bank, framed the investment as a way to increase growth capital for UK businesses that have been underserved by private equity.
Summary
The British Business Bank, the government-backed development bank, has committed £40m to the first close of Harwood Private Capital UK Fund II, according to the article. The fund has secured £120m in total commitments across its debt facility and co-investment vehicles. The bank said the investment is intended to increase the supply of growth capital to smaller UK businesses.
Harwood Private Capital is the credit arm of Harwood Capital Management and describes itself as an alternative lender offering tailored financing to UK small and medium-sized enterprises, particularly those not backed by private equity. The fund backs smaller and lower mid-market private companies through expansion, acquisitions and shareholder transitions. Its first fund, the HPC UK SME Fund, has backed businesses in sectors including digital technology, clean energy supply chains, manufacturing and tourism, among them Welsh marina operator Western Marinas.
The new commitment brings the British Business Bank's total exposure to Harwood to £75m. The bank put £35m into the first fund in 2020. Adam Kelly, managing director for debt and regional funds at the British Business Bank, said Harwood has developed a strong track record in this segment and that the commitment would help increase the availability of growth capital, support economic growth and create jobs across the UK.
Haseeb Aziz, managing partner at Harwood Private Capital, said the committed capital allows the firm to continue providing flexible partnership capital that enables businesses to grow, make acquisitions and manage ownership transitions on their own terms.
Harwood Private Capital is the credit arm of Harwood Capital Management and describes itself as an alternative lender offering tailored financing to UK small and medium-sized enterprises, particularly those not backed by private equity. The fund backs smaller and lower mid-market private companies through expansion, acquisitions and shareholder transitions. Its first fund, the HPC UK SME Fund, has backed businesses in sectors including digital technology, clean energy supply chains, manufacturing and tourism, among them Welsh marina operator Western Marinas.
The new commitment brings the British Business Bank's total exposure to Harwood to £75m. The bank put £35m into the first fund in 2020. Adam Kelly, managing director for debt and regional funds at the British Business Bank, said Harwood has developed a strong track record in this segment and that the commitment would help increase the availability of growth capital, support economic growth and create jobs across the UK.
Haseeb Aziz, managing partner at Harwood Private Capital, said the committed capital allows the firm to continue providing flexible partnership capital that enables businesses to grow, make acquisitions and manage ownership transitions on their own terms.
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