British Business Bank anchors Beach Point SME fund's £65.7m first close

Beach Point Capital's fourth UK and Ireland SME direct lending fund held a £65.7 million first close, backed by a British Business Bank commitment of up to £59 million. Alternative Credit Investor reported the first close on Nov. 5.

The bank said the new commitment would take its total potential commitment to Beach Point above £100 million. That follows £20 million in 2022 and £30 million in 2025, putting the stated maximum across the three commitments at £109 million.

The first close leaves at least £6.7 million for investors outside the British Business Bank. The fund's target size was not disclosed.

BPC Europe SME DAC will lend £500,000 to £10 million to growth-focused companies with annual turnover below £25 million across the UK and Ireland. Beach Point calls the strategy sector-agnostic and expects to keep its record of lending to financial services and to digital and technology businesses.

The previous iteration lent to 26 businesses across all UK nations and regions, with a particular focus on Northern Ireland, Scotland and the north of England, according to Beach Point.

Adam Kelly, managing director and co-head of funds at the British Business Bank, said the fund would "provide much-needed growth capital to smaller businesses across the UK's Nations and regions, particularly in areas where access to finance can be more limited."

As Private Wealth Daily previously reported, the bank's second regional fund in a month put £140 million behind loans of £25,000 to £2 million.