British Business Bank commits up to £59m to Beach Point SME lending fund

The British Business Bank has committed up to £59m to a new fund managed by Beach Point Capital UK, aimed at increasing access to growth finance for smaller businesses across the UK and Ireland.

The cornerstone investment forms part of a £65.7m first close for BPC Europe SME DAC, the fourth fund in Beach Point’s UK and Ireland SME direct lending strategy.

The commitment builds on the Bank’s previous investments of £20m in 2022 and £30m in 2025 into Beach Point’s first dedicated UK SME lending fund, taking its total potential commitment to the investment manager to more than £100m.

The new fund will provide flexible senior debt financing to growth-focused businesses with annual turnover below £25m, offering loans ranging from £500,000 to £10m.

The funding is designed to help SMEs invest in their operations, expand, pursue acquisitions and create employment, with a particular focus on improving access to finance across the UK’s Nations and regions.

Beach Point’s previous UK SME lending fund has supported 26 businesses across the UK, with a particular focus on Northern Ireland, Scotland and the North of England.

The new fund will continue this regional approach, targeting businesses across a range of industries. Although sector agnostic, it is expected to maintain Beach Point’s investment focus on businesses operating in the digital and technology and financial services sectors.

“By building further on our strong partnership with Beach Point Capital, this new fund will 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.

“By providing ambitious companies with the flexible finance they need to invest, expand and create jobs, we can help unlock local economic potential and support growth in communities across the UK.”

The investment reflects the British Business Bank’s ongoing efforts to increase the availability of finance for smaller businesses, particularly those seeking capital to support expansion and long-term investment.

Shane Lanigan, Portfolio Manager and Head of European Lending Solutions at Beach Point Capital UK, welcomed the Bank’s continued support.

“We are delighted with British Business Bank’s continued support and its recognition of the important stimulus our strategy can bring to local and regional growth.

“The challenge is not simply to generate growth, but sustainable, productive and broadly distributed growth. Viable SMEs with the ambition and capacity to scale are exceptionally important to that process.

“By providing flexible capital at critical points in their development, we can help businesses invest, expand and create employment in the communities in which they operate.”

“Small businesses are at the heart of our communities, creating jobs and driving growth. This new funding will help more of them access the finance they need to grow, particularly in areas like Northern Ireland, Scotland and the North of England.”