Mark Bryant explains the Business Growth Fund, a major new initiative that provides long term investment of between £2-10m for UK manufacturers with a turnover of between £5-100m and looking to grow.
On 18 April 2013 the IET hosted this year’s UK Manufacturing Summit at Savoy Place London. Following the publication of the government’s green paper, 'Financing a private sector recovery' in July 2010; the chief executives of some of the largest banks and the British Bankers' Association (BBA) set up a Business Finance Taskforce to consider what more could be done to help the UK return to sustainable growth.
The BGF (Business Growth Fund) is one the key recommendations of that Business Finance Taskforce which agreed to act as financial backers of the Fund (providing up to £2.5 billion to help BGF begin investing in suitable businesses).
BGF provides long-term capital for fast growing British companies that are typically turning over between £5m and £100m. They invest between £2m and £10m in return for a minority stake in the business and a seat on the board and as an independent company, BGF's investment decisions are not influenced by the banks or government. Representing a major new initiative, no other comparable organisation exists in the UK for this kind of funding.