Business Growth Fund (2016-2017)
BGF was set up in May 2011 to fill a gap in the funding market for Britain’s smaller and mid-sized companies. Since then it has invested nearly £1bn across more than 140 companies, making BGF the UK’s most active provider of growth capital.
BGF only ever takes a minority stake and typically provides between £2m to £10m as an initial investment, with the ability to provide further funding as a company continues to grow. BGF originally focused on private companies with sales of £5m-£100m. In 2014 BGF began to broaden its focus when made its first investment in an (AIM) listed company, and in 2015 BGF Ventures was established to help earlier-stage technology companies.
Investee companies’ cumulative turnover has increased more than 20% since the time of investment: this now stands at £3.1billion. The combined performance of BGF’s first six exits illustrates what scale-ups can achieve with access to growth capital. During the period of BGF investment revenues in these companies grew by an average of 58 per cent and ebitda by 47 per cent.
This programme is associated with Recommendation 11 of the Scale-Up Report.