Beechbrook Capital raises £128m

The London-based specialist direct lender holds initial close for second SME credit fund.

Beechbrook Capital has held a first close of its second UK SME Credit Fund at £128 million ($168 million; €149 million). Beechbrook UK SME Credit Fund II invests in small to mid-sized businesses in the UK with turnovers between £10 million and £100 million and EBITDA of £1 million or more. It primarily provides senior secured loans to non-private equity-backed companies to support acquisitions, buyouts, shareholder realignments, re-financings and expansions.

The fund has received support from new and existing investors, including the British Business Bank and Strathclyde Pension Fund.

Beechbrook UK SME Credit I closed at £152 million in January 2017.