British Business Investments has announced a cornerstone commitment of £20 million to Tosca Debt Capital’s (TDC) Impact Fund.
The fund focuses on supporting entrepreneur-led smaller businesses looking to grow and create employment following the adverse pressures of the pandemic. TDC achieved a first close of the fund of £40m and is targeting a hard cap of £50m.
British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of a range of finance providers. Since it was established in 2014, British Business Investments has committed more than £3.0bn to providers of finance to UK smaller businesses.
Predominantly supporting Northern businesses, TDC’s Impact Fund lends between £1m-£5m to smaller businesses that will create jobs as a result of investment. The sector-agnostic fund, led by Vicki Daly and Gary Davison, aims to utilise the experience, networks and skill-base of TDC to support the development of smaller businesses which would otherwise be unable to access capital to grow. The fund is focused on successful companies that were profitable prior to the pandemic and aims to provide them with the firepower and support to develop and build value both within their own businesses and within their wider communities.
Judith Hartley, CEO, British Business Investments, said: “This £20m commitment from British Business Investments to TDC’s Impact Fund will help growing smaller businesses in the North to access the additional investment capital they need to scale up. British Business Investments’ objectives are to ensure smaller businesses can access as diverse a range of finance options as possible and to reduce regional imbalances in access to finance. This compliments TDC’s approach as an alternative lender, supporting the development of Northern businesses which might otherwise be unable to access capital to grow.”
Gary Davison, Founding Partner at TDC, said: “The recent pandemic has adversely impacted every sector of the UK economy and there is no question that smaller businesses have been hit the hardest. We are looking to utilise our resources and investment platform to address that imbalance and provide inherently strong and well-managed SME businesses with support to achieve their strategic growth ambitions. We are committed to staying invested in our community and we hope this new fund will help to address post-pandemic regional imbalances creating new jobs and stimulating growth in the North.”BUSINESS NEWS • ECONOMIC NEWS • Get Funded • MAKE MONEY • News