State-backed BGF inks fourth deal of the month


Business Growth Fund (BGF), the £2.5bn state-backed vehicle aimed at financing UK SMEs, has made two investments totaling £4.4m into Springfield Healthcare Group, the largest independent provider of domiciliary care in Yorkshire and Humberside.

The investments of £2.5m and £1.9m respectively were made into Springfield Homecare and Seacroft Care Village.

The deal follows BGF’s investments of £4m into Primrose, an online retailer of garden products, and £3m into Cennox, a group of companies that provide services to the cash machine sector.

These four investments totaling £11.4m were all completed in June.

“We are now averaging two investments per month, which will continue to rise,” BGF CEO Stephen Welton said in a statement released today.

“This highlights growing demand on the part of the businesses that we want to support and keeps us on track to achieve our mid term goal of making 40 plus investments per year with a combined initial value of about £250m.

“Equally, as our portfolio companies grow, they will need follow-on capital and BGF has been structured with this flexibility in mind. Assuming half our investee companies raise follow-on capital, this could easily and quickly add an additional £100m or so to our annual investment level.”

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