Fifteen years after it was established to address a structural funding gap in the UK mid-market, growth capital provider BGF has invested over €5.8 billion (£5 billion) in 650 businesses, marking a milestone in its mission to support the country’s growth economy. The firm provides flexible capital as a minority
David Cendon Garcia
Fifteen years after it was established to address a structural funding gap in the UK mid-market, growth capital provider BGF has invested over €5.8 billion (£5 billion) in 650 businesses, marking a milestone in its mission to support the country’s growth economy.
The firm provides flexible capital as a minority equity partner. Initial investments in growth-stage business are between €3.5 million (£3 million) and €35 million (£30 million), and between €3.5 million (£3 million) and €11 million (£10 million) for earlier-stage businesses.
Andy Gregory, Chief Executive Officer of BGF, says: “Fifteen years ago, BGF was created to address a structural gap in the market. The deployment of £5 billion across over 650 businesses, reflects both the size of that opportunity and the consistency of BGF’s approach over time.
“Our model is deliberately different – providing long-term capital through minority investments. That allows us to partner with entrepreneurs and management teams without taking ownership, supporting them to scale their businesses on their own terms. That approach has enabled us to build a national platform, deliver real economic impact, and generate sustained outcomes across the portfolio. As we look ahead, we remain focused on backing ambitious businesses and continuing to deploy capital at scale across the UK and Ireland.”
When considering BGF’s milestone, its important to note its activity so far this year, which shows the investor continuing to deploy minority growth capital across UK-based companies in different sectors.
Ben Barker, Chief Investment Officer of BGF, adds: “Reaching more than £5 billion deployed is a significant milestone for BGF. Over that time, we have created a broad and diversified portfolio, with performance reflected in strong realisations, and our evergreen funding enabling us to recycle capital into new opportunities.
“Investments such as OrganOx demonstrate how we can support companies from early growth through to international scale and successful exit. We continue to see a strong pipeline of investment opportunities across sectors and regions for deployment and exits, and are well placed to build on our successful track record.”
Founded in 2011, BGF provides long-term, flexible capital to SMEs. Today, the firm is one of the UK and Ireland’s most active growth investor and has backed more than 650 companies across a network of 15 offices.
74% of capital has been deployed outside of London and the South East, reflecting BGF’s regional focus.
BGF crossed today’s milestone with its third investment in Gaussion – as covered by EU-Startups. Gaussion uses an external magnetic field to improve the performance and lifespan of battery systems.
According to BGF, their model has translated into the following economic impact and returns.
Returns: the firm has generated €4.3 billion (£3.7 billion) in proceeds across more than 280 exits, across growth and early stage businesses; Revenue: BGF-backed companies have delivered more than €9.5 billion (£8.2 billion) in revenue growth; Job creation: BGF’s portfolio companies have created over 35,000 jobs; Performance: since 2016, the firm’s exits have delivered a 22.6% gross IRR and a 2x money multiple.
BGF currently has a portfolio of 360 investee businesses and AuM of €4 billion (£3.5 billion). Their current investment strategy includes deploying capital across all of the UK and investing in sector-agnostic, Growth stage businesses as well as Early Stage companies – supporting those with a strong focus on the UKGOV’s priority industries.
After today’s announcement, they have committed to invest a further €3.5 billion (£3 billion) over the next five years.
