British Business Investments Ltd, a commercial subsidiary of the British Business Bank, announces today a commitment of £35m to Harwood Private Capital UK LP at its first close of £70m.
The fund will focus on deploying £3m to £15m into UK founder, family and management owned businesses, with flexible capital investing across the capital structure. Investment can be used to facilitate organic growth, acquisition, shareholder restructuring, refinancing or act as a bridge to an IPO.
Harwood Private Capital is a joint venture between Managing Partner, Haseeb Aziz (ex-European head of HIG Whitehorse, the private debt arm of HIG Capital) and Harwood Capital Management Group, a specialist small cap fund manager with £1.7bn(1) of assets under management.
The fund will look to provide bespoke financing solutions, offering senior and subordinated debt as well as preferred equity type capital.
Haseeb Aziz, Managing Partner, Harwood Private Capital said: “We are finding that strong management teams with good businesses are increasingly looking for a financial partner without ceding majority control. Our flexible mandate enables us to provide tailored capital solutions to help independently owned SMEs achieve their strategic objectives. By leveraging Harwood group’s extensive network of operational, management and industry experts, we are well placed to support investee companies and deliver compelling returns to investors.
While the impact of Covid-19 is clearly being felt in many parts of the economy, we are sector agnostic and are seeing a greater need for our capital across a range of industries.”
Catherine Lewis La Torre, CEO, British Business Investments, said: “As the commercial arm of the British Business Bank, we support increased diversity and choice in debt and equity markets. The team at Harwood Private Capital have an impressive track record and we are confident the UK SME Fund will provide a much needed alternative source of capital, and business support, particularly at a time when traditional lenders may overlook the type of opportunities that Harwood are well placed to identify and serve.”