Beechbrook Capital has participated in two debt financing deals. Both transactions have been made from the firm’s UK SME Credit Fund, which focuses on non-sponsored transactions in the UK.
Despite the focus on non-sponsored deals, one of the financings does involve an equity investor. Beechbrook is providing capital to facilitate the management-led buyout of UK-based heating supplier Nu-Heat. The firm is backed by high-net-worth investment house Bestport Capital.
Jon Herbert, managing director at Beechbrook, noted while Bestport is involved in the transaction, it doesn’t represent a traditional sponsored deal involving private equity ownership. “It’s shades of grey at the end of the day,” he said. “If you look at where the money is coming from [at Bestport] it’s from high-net-worth investors.”
In addition to the Nu-Heat deal, Beechbrook is also providing financing to Wilton & Bain, a company providing search services to technology and professional service firms.
Terms of the two deals could not be determined by time of publication. Herbert added, however, both deals fell into the typical range for the fund, which is usually between £5 million and £15 million.
Herbert added both deals were attractive since Beechbrook was able to structure them to meet the return goals of its offering. He declined to state the exact return goals of the fund.
With these two deals the fund has now invested more than half of its investable capital, Herbert added.