SME fund doubles in size after securing £50m investment from Avon Pension Fund

Avon Pension Fund has committed £50m to Foresight Group’s evergreen South West Fund, which backs to growing SME companies from across the region.

The Fund has now achieved a second close at £100m, after it was initially launched with a cornerstone investment from Devon Pension Fund.

Matt Smith, Foresight Group

Foresight partner Matt Smith said “the additional investment from the Avon Pension Fund will allow us to invest in more ambitious growing companies across the South West.”

The Foresight South West Fund is the seventh regional private equity fund for the FTSE 250-listed private equity and infrastructure investment manager. It is designed to be evergreen, providing a permanent pool of capital for SMEs in a broad range of sectors, and can support the full range of transaction types including growth capital, buy-outs and equity release.

Cllr Paul Crossley, chair of Avon Pension Fund committee, said: “There is a demand for funding for small and medium sized companies, and investment is crucial to ensure local businesses can reach their full potential.

“We’re very pleased to support this fund with a £50m commitment which is Avon Pension Fund’s latest local impact initiative, following our recent successful investments into renewable energy and affordable housing in the South West.

“We see great potential in the businesses located across the region and we believe this Fund will support the creation of high-quality, local jobs and positively impact the local economy.”

The £6bn Avon Pension Fund is administered by Bath & North East Somerset Council for more than 140,000 members across 450 employers in the former Avon area. The investment in Foresight’s fund means it now has £175m – around 3% – committed to local impact investing.

Foresight has made two appointments since announcing the fund, with Olly Cox joining from Literacy Capital and Dave Guy returning to the corporate finance advisory sector after a year in industry.