| A new Business Growth
Fund (BGF) has been launched to help
Britain’s smaller and medium sized
businesses with an annual turnover of
around £10 million to £100 million. The
independent fund of up to £2.5 billion is
backed by five of the UK’s main banking
groups – Barclays, HSBC, Lloyds, RBS and
Standard Chartered – working in
collaboration with the British Bankers’
Association.
Speaking to mark the launch of the fund
on 19 May, Business Secretary Vince
Cable said: “The Business Growth Fund is
ready to make substantial equity
investments into ambitious mid-cap British
companies who are set to create the
business success stories of the coming
years.”
The BGF will invest sums of between £2
million and £10 million approximately per
business in return for a minimum ten per
cent equity stake and a seat on the board
for a BGF director. The fund will provide
long-term equity investment for those
growing companies which today do not have
access to this source of capital.
Dr. Cable added: "Good investing
requires local connections to find and
assess opportunities, so for the fund to
have a presence outside London – in both
Birmingham and Edinburgh – is particularly
heartening. British businesses must have
access to the growth capital they need,
wherever they are based."
LINK:
Business Growth Fund |
