British Business Bank anchors Beach Point's £65.7M SME lending fund

What's the deal? The British Business Bank has made a cornerstone commitment of up to £59 million to BPC Europe SME DAC, a new direct lending fund from Beach Point Capital UK, as part of a £65.7 million first close. It is the fourth fund in Beach Point's UK and Ireland SME direct lending strategy.

What's the endgame? The fund will provide flexible senior debt to growth-focused businesses with annual turnover under £25 million, offering loans of between £500,000 and £10 million across the UK and Ireland. It targets companies seeking capital to invest, expand, make acquisitions, and create jobs.

Why now? The commitment builds on the Bank's previous investments of £20 million in 2022 and £30 million in 2025 into Beach Point's first dedicated UK SME lending fund. That takes its total potential commitment to Beach Point past £100 million.

Beach Point's predecessor fund backed 26 businesses across all UK Nations and regions, with a focus on Northern Ireland, Scotland, and the North of England. The new fund is sector agnostic but is expected to continue a track record in digital, technology, and financial services.

"By building further on our strong partnership with Beach Point Capital, this new fund will provide much-needed growth capital to smaller businesses across the UK's Nations and regions, particularly in areas where access to finance can be more limited," said Adam Kelly, managing director and co-head of funds at the British Business Bank.

The signal: The deal reflects the government-owned bank's wider push to channel capital into UK businesses, following £180 million committed across six AI and deep-tech funds in October and a £75 million cornerstone commitment to Molten Ventures in September. Here the focus shifts from venture to regional SME lending, aimed at underserved parts of the country.

Read more: british-business-bank.co.uk

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