Business Growth Fund

The Business Growth Fund is an independent investment company with £2.5 billion to invest in fast-growing smaller and medium sized UK businesses that need long-term capital to drive their future success. Funded by five of the UK's main banking groups, the BGF can invest off its own balance sheet and act quickly for the right opportunities. The BGF is entirely independent of Government.

In addition to providing investments of £2m to £10m in return for a minority equity stake, the BGF will work in partnership with its investee companies. They will benefit from the BGF's expertise and guidance on strategic and operational issues plus access to a significant UK-wide network of contacts.

The BGF will invest in established UK companies (with sales of around £5m to £100m) that have a strong growth trajectory. Its investment can be used as development capital to fund growth that is organic, achieved via acquisition, or both. The BGF will not engage in company buy-outs, although an injection of cash from the BGF may facilitate some change of ownership, providing the majority of funding is used to generate growth. The Fund is keen to work with business angels who, as well as being useful partner investors, could offer sector specific expertise, and experience of providing strategic advice to companies as non-executive directors at board level. The BGF will work with individual and institutional investors to look at mutually beneficial opportunities for the BGF, partner investors and, most importantly, the investee companies.