The British Business Bank has committed £40m to an investment fund targeting firms in the Midlands and the north of England.
The Evolution Fund from Birmingham-based Frontier Development Capital is an £81.5m vehicle that will provide debt financing ranging from £1m to £8m to established SMEs with proven growth potential.
The British Business Bank previously supported Frontier Development Capital’s debt fund in 2020.
“The British Business Bank is committed to increasing the supply and diversity of finance for smaller businesses,” said Adam Kelly, managing director and co-head of funds at British Business Bank.
“By backing experienced fund managers like FDC, we help improve access to finance for ambitious companies across the UK’s Nations and regions.”
The British Business Bank last month committed £16.7m to a sustainable tech fund backed by JP Morgan and BNP Paribas.
The Evolution Fund has also received a £40m commitment from West Midlands Pension Fund.
“The Evolution Fund reinforces FDC’s commitment to regional businesses often underserved by traditional lenders,” added Graham Mold, head of growth capital at Frontier Development Capital.
“As no two deals are the same, it is also designed to meet the need for tailored SME funding. Our team’s ability to assess risk, structure investments and support resilient businesses makes FDC a valued funding partner.”
Previous investments from Frontier Development Capital include micromobility startup Beryl and enterprise software group Opus Safety.
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