Freshstream invests in Portman Finance Group to support SME lending growth

Freshstream Investment Partners has agreed to invest in Portman Finance Group, supporting the commercial finance provider’s next phase of growth and expansion across the UK SME funding market.

Founded in 2007 by CEO Alex Read and headquartered in Northampton, Portman provides SMEs with access to a broad range of commercial finance solutions through a panel of more than 45 lending partners, alongside its own lending activities.

The business has expanded significantly in recent years, broadening its offering beyond asset finance to provide a wider range of funding solutions for UK businesses.

Portman has also been recognised by The Sunday Times and Financial Times as one of the fastest-growing companies in the UK and Europe, respectively.

Under the agreement, Freshstream will invest alongside Read and Portman’s existing management team, who will continue to lead the business and retain a majority ownership stake.

The investment will support Portman’s plans to expand its market reach, develop its commercial finance offering and help more SMEs access funding.

“Freshstream shares our ambition for the business and brings the experience and expertise to help us build on the strong momentum we have created. Together, we see a significant opportunity to expand our reach, support more SMEs and continue developing one of the UK’s leading commercial finance platforms.”

Portman will become the tenth investment from Freshstream’s first independent fund, which closed in 2023 after raising €762m.

The investment firm specialises in supporting entrepreneur-led businesses across Europe, with an existing portfolio that includes Bella Figura Music, Detertech, G2V Group, MCR, My Jewellery, Project Better Energy and Worldstream.

Freshstream said the partnership would draw on its experience of supporting growing businesses and working with management teams to develop their operations over the long term.

Tom Carroll, Partner at Freshstream, said: “Alex and the team have built a highly impressive and fast-growing business that plays an important role in helping SMEs access funding.

“The quality of the management team and their entrepreneurial spirit stood out from day one, and we believe there is a significant opportunity ahead. We are delighted to be partnering with Portman and look forward to supporting the business as it enters its next phase of growth.”

The transaction reflects continued investor interest in specialist commercial finance platforms that connect SMEs with a range of lending products and funding partners.

Portman and its shareholders were advised by Stephens and Travers Smith, while Freshstream was advised by Moelis & Company, Clearwater International and Willkie Farr & Gallagher. Financial terms of the investment were not disclosed.