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Beechbrook collects over 100 mln euros for third private debt fund

Beechbrook Capital has raised over 100 million euros for its third private debt fund. The investors include European Investment Fund and the British Business Bank Investments Ltd, the commercial arm of the British Business Bank. The fund is expected to close in 2017.


Beechbrook Capital, the European specialist direct lender, announces the first close on its third Private Debt Fund at over €100m.

Commitments have been received from the European Investment Fund, British Business Bank Investments Ltd – the commercial arm of the British Business Bank – and a number of leading European institutional investors. A second close is expected towards the end of 2016, with a final close in 2017.

Beechbrook managing partner, Paul Shea, said: “We are delighted to receive so much support from both existing and new investors, who share our view that the European lower mid-market continues to represent a compelling investment opportunity. With a strong and growing track record, Beechbrook is well placed to pursue this opportunity.”

Beechbrook private debt funds provide debt capital to European private equity-sponsored businesses with turnover between €10m and €100m. Typically Beechbrook invests €5 million to €15 million per transaction to support acquisitions, buyouts, shareholder re-alignments and general expansion plans.

Founded in 2008, Beechbrook is one of the most experienced and successful European private debt managers with almost €500m raised to date across four funds and two distinct strategies. In December 2015, it also held a first close on its UK SME Credit Fund, which has a separate dedicated team and invests in sponsor-less SMEs in the UK. In total, Beechbrook has made 36 investments in the European lower mid-market, with ten full exits to date.

Beechbrook Capital, a specialist direct lender founded in 2008, invests in SMEs across a range of industries in the UK and across Europe. In addition to the UK SME Credit Fund, Beechbrook’s existing three private debt funds support northern European private equity-backed companies with a typical enterprise value of €10 million to €100 million, investing an average of €8 million to €9 million per transaction. The finance Beechbrook provides often fills a funding gap between equity and bank debt faced by SMEs as banks focus on large corporates and capital market activities.

Beechbrook is backed by institutional investors who are drawn to the attractive, risk-adjusted returns it generates. The firm has completed 36 investments in growing European businesses since 2010.