BOOST&Co has secured funding of £50m from British Business Investments (BBI) for its second fund, Industrial Lending II. BBI previously committed money to BOOST&Co’s first fund, which has now been fully invested.
The new funding comes as BOOST&Co expands across the UK: the private-debt lender, which opened an office in Manchester earlier this year, is due to launch an outpost in Bristol in May, followed by an office in Cambridge later in 2019.
This expansion aligns with BBI’s strategy to create more choice and competition in the market by increasing the supply and diversity of finance across the UK, while also reducing imbalances in access to funding for SMEs.
BOOST&Co’s partner Lance Mysyrowicz says: “British Business Investments has engaged with us in a practical and commercial manner over the past few months to deliver a substantial commitment to our new fund. We look forward to deploying this capital throughout the UK and thank the BBI for the faith it has shown in us over the past six years.”
BOOST&Co, which is also funded by insurance companies and large pension funds, specialises in lending solutions for high-growth SMEs in the UK. It offers growth capital and venture debt of £2m to £10m to businesses in all sectors, with a focus on software, business services, fintech and cleantech.
BBI – a commercial subsidiary of the British Business Bank, the UK government’s economic development bank – aims to earn a commercial return by investing, through finance providers, in smaller businesses and small mid-caps. It pursues investments on a commercial basis, without receiving economic advantage from the government.
Catherine Lewis La Torre, the chief executive of BBI, says: “Our investment in BOOST&Co’s new fund is a further demonstration of our commitment to promoting greater choice in the supply of lending to smaller businesses.
“Growth capital and venture debt finance are important options for innovative businesses that want to grow rapidly, because these forms of capital can help them to scale up without relinquishing control. We are pleased to support BOOST&Co as the lender expands its operations across the UK.”
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