The British Business Bank has increased its commitment to Beach Point Capital UK’s specialist SME lending fund, bringing its total backing to £50m.

The latest increase builds on the Bank’s original support in July 2022 and will allow the fund to broaden its reach, particularly among high-growth firms in underserved regions.

Since the initial investment, Beach Point Capital UK has channelled funding into 26 businesses across all parts of the UK, with a particular emphasis on Northern Ireland, Scotland and the North of England.

The fund has already exceeded its original pledge to invest at least £10m into Northern Ireland’s SME sector, deploying £16m with a further £3m committed to four additional high-growth companies in the region.

The latest tranche of funding will enable Beach Point to continue deploying flexible loans to fast-growing smaller firms, with a continued focus on regional markets in both the UK and Ireland.

Adam Kelly, managing director and co-head of funds at the British Business Bank, said the enhanced investment was aimed at sustaining momentum in regions that have historically lacked access to sufficient capital. “

We are proud to continue our partnership with Beach Point Capital UK, which has provided vital support to smaller businesses in the UK’s Nations and regions,” he said.

“By increasing our commitment, we can continue to back high growth businesses across the UK’s Nations and regions, address regional imbalances and drive employment and economic expansion across the whole of the UK.”

Beach Point’s approach centres on closing the equity gap faced by many SMEs, particularly outside London and the South East. Shane Lanigan, portfolio manager at Beach Point Capital UK, welcomed the British Business Bank’s continued involvement, saying the fund was well-positioned to support ambitious firms at key stages of their development.

“SMEs are the cornerstone of the UK economy, from a jobs, growth and a regional economic perspective,” he said.

“This additional funding will help us to address the equity gap and provide flexible capital at critical moments in SMEs’ business journeys. We look forward to identifying new investment opportunities and helping budding entrepreneurs across all regions of the economy.”