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British Business Bank Investments Ltd partner Beechbrook Capital holds first close on latest private debt fund

British Business Bank Investments Ltd provides €20m to new debt fund, Beechbrook – Private Debt III LP.

Beechbrook Capital, the European specialist direct lender, announces the first close on its third Private Debt Fund at over €100m.

The fund has received commitments from British Business Bank Investments Ltd, the European Investment Fund  and a number of leading European institutional investors. A second close is expected towards the end of 2016, with a final close in 2017.

Beechbrook managing partner, Paul Shea, said:

“We are delighted to receive so much support from both existing and new investors, who share our view that the European lower mid-market still represents a compelling investment opportunity. With a strong and growing track record, Beechbrook is well placed to pursue this opportunity.”

Beechbrook private debt funds provide debt capital to European private equity-sponsored businesses with turnover between €10m and €100m. Typically Beechbrook invests €8 million to €9 million per transaction to support acquisitions, buyouts, shareholder re-alignments and general expansion plans.

Founded in 2008, Beechbrook has raised almost €500m across four funds and two distinct strategies. In December 2015, it also held a first close on its UK SME Credit Fund, which has a separate dedicated team and invests in sponsor-less SMEs in the UK. In total, Beechbrook has made 36 investments in the European lower mid-market, with ten full exits to date.

British Business Bank Investments Ltd has existing commitments to Beechbrook’s Mezzanine Fund 2, which has now reached the end of its investment period.  The new fund will be pursuing a similar investment strategy, pursuing sponsored lending and being oriented primarily toward mezzanine, with a smaller element of unitranche and equity co-investment.

ENDS

For further information, please contact:

Paul Shea, Beechbrook Capital, 020 3551 5971, paul.shea@beechbrookcapital.com

or Caroline Cecil, Caroline Cecil Associates, 020 7610 4110, ccecil@carolinececil.co.uk

Notes to editors

Beechbrook Capital, a specialist direct lender founded in 2008, invests in SMEs across a range of industries in the UK and across Europe. In addition to the UK SME Credit Fund, Beechbrook’s existing three private debt funds support northern European private equity-backed companies with a typical enterprise value of €10 million to €100 million, investing an average of €8 million to €9 million per transaction. The finance Beechbrook provides often fills a funding gap between equity and bank debt faced by SMEs as banks focus on large corporates and capital market activities.

Beechbrook is backed by institutional investors who are drawn to the attractive, risk-adjusted returns it generates. The firm has completed 36 investments in growing European businesses since 2010.