British Business Bank programme: Investment Programme and our other commercial investments
In September 2014, European Capital closed a £100 million fund, European Capital UK SME Debt LP, (the ‘UK SME Fund’) to provide debt finance to small and medium sized enterprises in the UK. The fund will invest in businesses with a turnover of up to £100 million. British Business Bank Investments Limited – the commercial arm of the British Business Bank – is committing £50 million to the fund under its Investment Programme.
The Fund supports the growth of small and medium enterprises in the UK by providing private debt to businesses with annual turnover not exceeding £100 million for the purposes of growth capital, financing of acquisitions, and refinancing of existing debt. Since 2005, European Capital has provided over £130 million in debt financing to UK businesses with turnover below £100 million in the past across key sectors of the economy, including consumer retail, healthcare, technology, and financial services.
In addition to the UK SME Fund, European Capital actively invests in pan-European private debt and private equity since 2005. Its pan-European private debt fund underwrites unirate and mezzanine debt for Western and Northern European middle-market companies with enterprise value of €50 million to €500 million and also opportunistically invests in attractively priced secondary loan positions. European Capital is a wholly owned subsidiary of American Capital (Nasdaq: ACAS).