Key Takeaways
- • The British Business Bank committed an additional GBP £40 million to Harwood Private Capital as part of the first close of Harwood Private Capital UK Fund II, bringing total capital across the fund and its co-investment vehicles to about GBP £120 million.
- • The Bank's total commitment to Harwood rises to GBP £75 million, following a GBP £35 million commitment to Harwood's first fund in 2020.
- • Harwood provides flexible debt to lower mid-market UK businesses with EBITDA of GBP £2 million to GBP £10 million; its parent Harwood Capital Management manages more than GBP £1.4 billion across public equities, private equity and private debt, according to figures provided.
- • The commitment supports founder-, family- and management-owned businesses seeking growth capital, acquisitions or ownership transitions without giving up control.
- • Adam Kelly, Managing Director, Debt & Regional Funds at the British Business Bank, said the commitment will help increase the availability of growth capital for UK businesses.
Summary
The British Business Bank has committed an additional GBP £40 million to Harwood Private Capital as part of the first close of Harwood Private Capital UK Fund II, according to the report by ChannelLife UK. The commitment lifts total capital across the fund and its co-investment vehicles to about GBP £120 million and raises the Bank's total commitment to Harwood to GBP £75 million, following a GBP £35 million commitment to Harwood's first fund in 2020.
Harwood Private Capital provides flexible debt to lower mid-market businesses in the UK. The new fund and its co-investment vehicles are intended to support smaller private companies pursuing expansion, acquisitions and shareholder transitions. Harwood backs businesses with EBITDA of GBP £2 million to GBP £10 million. The wider Harwood Capital Management group manages more than GBP £1.4 billion across public equities, private equity and private debt, according to the figures provided. The firm's first fund invested in sectors including digital technology, clean energy supply chains, manufacturing and tourism, including backing for Western Marinas, a Welsh marina operator restoring facilities in Wales and South West England.
The transaction reflects continued demand for non-bank finance among founder-led and family-owned businesses. Smaller UK companies often face limited funding options at the point of expansion, succession or acquisition, where traditional bank lending can be restrictive and an outright sale or private equity backing may not suit owners who want to retain control. The British Business Bank said it supported smaller businesses in accessing GBP £9.4 billion of finance in the latest year cited, through public funding, private capital mobilised alongside it and lending guarantees.
Adam Kelly, Managing Director, Debt & Regional Funds at the British Business Bank, said: "Many smaller businesses continue to face challenges accessing the flexible growth capital they need to scale, invest and realise their ambitions. Harwood has developed a strong track record of providing tailored financing solutions to UK SMEs, particularly those that have not been backed by private equity." Haseeb Aziz, Managing Partner at Harwood Private Capital, said the British Business Bank has backed the firm since its first fund and that many founder and family-owned businesses remain underserved by traditional lenders.
The commitment also supports Harwood as it raises its second UK fund, giving the manager capital to pursue deals in a segment where specialist private credit lenders have been expanding as banks adjust their lending appetite.
Harwood Private Capital provides flexible debt to lower mid-market businesses in the UK. The new fund and its co-investment vehicles are intended to support smaller private companies pursuing expansion, acquisitions and shareholder transitions. Harwood backs businesses with EBITDA of GBP £2 million to GBP £10 million. The wider Harwood Capital Management group manages more than GBP £1.4 billion across public equities, private equity and private debt, according to the figures provided. The firm's first fund invested in sectors including digital technology, clean energy supply chains, manufacturing and tourism, including backing for Western Marinas, a Welsh marina operator restoring facilities in Wales and South West England.
The transaction reflects continued demand for non-bank finance among founder-led and family-owned businesses. Smaller UK companies often face limited funding options at the point of expansion, succession or acquisition, where traditional bank lending can be restrictive and an outright sale or private equity backing may not suit owners who want to retain control. The British Business Bank said it supported smaller businesses in accessing GBP £9.4 billion of finance in the latest year cited, through public funding, private capital mobilised alongside it and lending guarantees.
Adam Kelly, Managing Director, Debt & Regional Funds at the British Business Bank, said: "Many smaller businesses continue to face challenges accessing the flexible growth capital they need to scale, invest and realise their ambitions. Harwood has developed a strong track record of providing tailored financing solutions to UK SMEs, particularly those that have not been backed by private equity." Haseeb Aziz, Managing Partner at Harwood Private Capital, said the British Business Bank has backed the firm since its first fund and that many founder and family-owned businesses remain underserved by traditional lenders.
The commitment also supports Harwood as it raises its second UK fund, giving the manager capital to pursue deals in a segment where specialist private credit lenders have been expanding as banks adjust their lending appetite.
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