BGF positive on investment opportunities
BUSINESS Growth Fund, the bank-backed growth capital provider, is aiming to expand its team across Yorkshire and the North of England as it ramps up its investment plans.
BGF’s portfolio in the North includes food chain Barburrito, pub group Wear Inns and domicilary care provider Springfield Healthcare Group.
Regional director Andy Gregory told TheBusinessDesk.com that BGF would look to add around four staff – including investment experts – to its six-strong team in the North, which includes Yorkshire and the North West.
Mr Gregory, who said BGF had identified a number of potential investment opportunities in Yorkshire, said: “We do want to have a genuine presence in key areas and we see Yorkshire as a very strong area for us.
“For us it (the market) is a great place to be as we are having lots of positive conversations with growing businesses.”
Richard Taylor, the former Sovereign Capital investment director who joined BGF earlier this year, added: “There’s not a proliferation of private equity in the region so we feel there is a great opportunity here.”
The Business Growth Fund was launched last year backed by £2.5bn from major banks. Launched as part of wider efforts to improve lending to business, the organisation provides capital of between £2m and £10m in profitable businesses with turnovers of between £5m and £100m in return for minority stakes in businesses of between 10% and 40%.
Mr Gregory added that BGF was in it “for the long term” and would be comfortable keeping its investment in portfolio companies for 10 years or more.
BGF, which is backed by Barclays, HSBC, Standard Chartered, Lloyds TSB and RBS, is looking to invest in between 30 and 40 companies across the UK next year. It is targeting 20 investments in this calendar year. It has so far invested more than £80m in 17 companies.
