British Business Bank, the UK government’s economic development bank, has made a cornerstone commitment of up to £59m to Beach Point Capital UK’s new fund, BPC Europe SME DAC, as part of a £65.7m first close. The fund, the fourth in Beach Point’s UK and Ireland SME direct lending strategy, was anchored at first close by the Bank.
The commitment follows earlier British Business Bank investments of £20m in 2022 and £30m in 2025 into Beach Point’s first dedicated UK SME lending fund. The latest allocation is expected to take the Bank’s total potential commitment to Beach Point Capital UK to more than £100m. No final close target was disclosed.
BPC Europe SME DAC will offer flexible senior debt to growth-focused businesses across the UK and Ireland. It will target companies with annual turnover of less than £25m, providing loans of between £500,000 and £10m for investment, expansion, acquisitions and job creation.
The fund is sector agnostic, but is expected to continue Beach Point Capital UK’s activity in Digital and Technologies and Financial Services. Its predecessor UK SME fund has 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 British Business Bank, said the fund would provide growth capital to smaller businesses across the UK’s Nations and regions, “particularly in areas where access to finance can be more limited”.
Beach Point Capital UK targets profitable or near-profitable SMEs with contracted or sticky revenue, typically owner-managed businesses that do not require venture capital or private equity involvement. It is a business unit of Beach Point Capital Management, a global credit investment manager with more than $20bn in assets under management.
Undiluted recently reported the news of a £450m increase in capacity for the British Business Bank for a new venture debt product following the UK’s Autumn Budget.