Investor pumps £40m into the region’s enterprises
Growth capital investor, BGF, has committed £40m to Yorkshire and North East businesses in 2022 and delivered strong realisations from its exits.
Deals in the last 12 months, include a £19m investment in bar operator, Arc Inspirations.
The long-term, minority investment was provided to support the continued roll-out of Arc’s three concepts – Banyan, Box & Manahatta.
Most recently, BGF completed a £13.75m investment in Leeds-headquartered audio visual (AV) and event technology specialist, Blue-i Group.
This funding will help fuel the group’s recruitment plans to expand its technical teams, as well as accelerate a capital investment programme which will support European sales growth.
In 2022, BGF successfully exited Wakefield-based 365 Response, a SaaS-based provider of transport services across the NHS and local authorities, and Coppergreen Leisure Resorts, a luxury, family-run holiday park business.
The latter deal completed in 2022, following a total of £21m invested into the Sheffield-headquartered holiday business, which was acquired by Away Resorts, backed by CVC Capital Partners Fund VIII.
Both of these exits delivered a combined money multiple of 2.4x on BGF’s original investment.
In addition, BGF expanded its team in the region with the appointments of John Healey and Linda Nguyenova as investors and opened its first fully serviced office in Newcastle, led by Healey.
Barry Jackson, head of BGF in Yorkshire and the North East, said: “2022 has shown the potential and opportunity that exists in the region, across a diverse range of sectors, including healthcare, technology, and retail.
“Looking ahead, our aim in the coming 12 months is to build strong relationships with fast-growth and entrepreneurial-led businesses looking for long-term, minority investments, such as Springfield Healthcare Group which we’ve now supported for a decade and has to date received £31m from BGF.”
The last 12 months also saw BGF provide follow-on funding for its existing portfolio including £5m to support education recruitment agency, Operam Education Group, in its buy-and-build growth strategy.
BGF supported Barnsley-based Operam with a £2.5m facility for future acquisitions as well as £2.5m investment, alongside £2.5m of senior debt from HSBC, to support the acquisition of West Midlands-based, First for Education.
In 2022, Bayfields Opticians & Audiologists has also received a further £2.5m from BGF, as it continues on the acquisition trail, expanding its presence across the UK.
Jackson added: “As with any challenging economy, strong, well-capitalised businesses in resilient sectors will find opportunities to seize market share, particularly from less nimble, over leveraged rivals.
“The success of our portfolio in 2022 is testament to this strength and agility.
“By adopting a minority, non-controlling equity partner approach, one with a patient outlook on investments, based on shared long-term goals with the management teams we back, BGF can support high quality businesses that have the appetite to scale.”
