Beechbrook backs credit risk consultancy – exclusive

The deal is the third from the firm’s UK SME Credit Fund, which is expected to close on up to £200m this year.

Beechbrook Capital (Beechbrook), the London-based direct lender, has provided debt and equity to 4Most, a UK provider of regulatory and credit risk analytics to banks, credit card providers and other businesses with consumer credit exposure.

The investment, which supports a shareholder realignment and organic growth, comes from Beechbrook’s UK SME Credit Fund, which held a first close on £100 million (€126 million; $141 million) in December 2015. The fund has a target size of between £150 million and £200 million, with a final close expected in the second half of this year.

“In Beechbrook we have found an innovative institutional investor who has adopted a debt-led approach to investing in our high-growth SME business whereas other investors were more focused on ownership,” said Mark Sisson, chief executive of 4Most.

The latest deal comes after Beechbrook completed the first two deals from its fund in February and March this year in the form of unitranche loans – the first to trampoline park operator Oxygen Freejumping, and the second to MCM Expo, a specialist exhibitions business.

Formed in 2010, Beechbrook offers mainly senior secured loans to non-private equity backed UK small and medium-sized businesses. It supports acquisitions, buyouts, shareholder realignments, MBOs, capex, roll-outs and refinancings.