Beechbrook readies Fund III

The London-based manager has made two investments in recent months from Fund II. Capital deployed now stands at 76 percent.

UK-based private debt lender Beechbrook Capital has invested 76 percent of its €151 million Fund II.

At the current rate of deployment, Beechbrook expects to start marketing for a successor fund in the second quarter of 2016, Paul Shea, founding partner, told PDI. Private Debt Fund II focuses on extending loans to private equity-backed companies in Europe.

Beechbrook is currently fundraising for a second strategy which will target lending to non-sponsor backed small- to medium-sized enterprises (SMEs) in the UK. The firm is seeking between £100 million and £200 million for the UK SME Credit Fund and marketing for Private Debt Fund III is due to start after fundraising for the new strategy concludes.

In recent months, Beechbrook has financed the acquisition of UK-based engineering company MCP Environment by GIL Investments with a mezzanine loan and equity co-investment. 

The firm originated and arranged the financing. Headquartered in Bradford, MCP Environment offers asbestos surveying and engineering works throughout the UK.

Beechbrook also provided a unitranche loan and equity co-investment to FirstCom Europe, a cloud-based technology service provider, in support of its acquisition of Connection. The buyout will help FirstCom grow its customer base.
The deals are the thirteenth and fourteenth investments made from Fund II. Terms on both were undisclosed.

Beechbrook partner Paul Shea said in a statement: “We are delighted to continue supporting the growth of UK and northern European SMEs. The recent deals further demonstrate our ability to deploy capital into high quality businesses and we expect to finance further transactions in Q1 2016.”