BGF has invested £10 million of equity capital to support GCI Com’s organic growth and active acquisition strategy, in return for a minority stake in the company.

Headquartered in Lincoln, GCI Com has a turnover of approaching £50 million and employs 220 staff across 9 UK locations. The group was formed in 2000 and has since grown rapidly, through a mix of organic growth and 19 strategic acquisitions. Today, it is one of the fastest growing managed communication providers in the UK with a 68% CAGR over the last two years.

GCI Com was founded by Group CEO, Wayne Martin, who has been involved in the communications industry for 25 years, having started his career at Cable & Wireless in the 1980s.

It has also been announced that John Cronin will join GCI Com as Non-Executive Chairman. John brings a wealth of executive and non-executive experience in growing and developing businesses in the technology and communications sectors, including senior roles at Arqiva Broadcast, Azure Solutions, NetSource Europe, Teleglobe, Kast Telecom, Mercury Communications and BT, and was introduced to the business by local executive search and recruitment firm Mallory Partners.

GCI Com services the rapidly expanding and converging data services and communications markets. It provides inbound and outbound telephony and data services to medium sized corporates and smaller enterprise customers on a national basis. Its high quality, blue chip customer base includes a diverse mix of companies from a wide range of sectors, including construction, industrials, media, retail and distribution.

The telecoms and IT services markets, in which GCI Com operates, are forecast to grow at between 5% and 50% as a result of the increased drive to outsourcing of infrastructure, services and software, particularly in the mid size corporate sector.

IT and communications systems are a critical part of any business infrastructure, but their increasing complexity and diversity and the resulting cost of having the requisite management skills in house has made the decision to outsource to specialist providers easier and more attractive. The macroeconomic environment is contributing to this trend, with businesses looking to reduce capital expenditure and operating costs while maximising revenues through improved efficiency.

Wayne Martin, Founder and CEO of the GCI Com, commented:

“BGF’s investment is a major milestone for GCI Com. It gives us the opportunity to significantly build scale and service diversity at a time when our clients need it and the market conditions are ripe for growth.

“For us, BGF’s offer made good business sense. We have worked very hard over the last twelve years to build up a range of specialist services and wide network footprint to best service our customer base. BGF’s injection of capital and objective operational experience will help us to consolidate the progress we have made to date and continue our active acquisition programme.

“In the past we have relied on bank debt or company cash reserves to finance our growth. The thought of private equity backing had not particularly appealed. BGF made us think differently. I haven’t ceded control of my business, but am in a stronger position because of their involvement as a partner and long term equity investor to realise the ambitions that I have for it.”

Tim Whittard, the Investment Director who led the investment from the BGF’s Birmingham office, commented:

“GCI Com is a perfect fit for BGF. We are keen to back highly motivated, focused entrepreneurs, qualities that Wayne Martin has clearly demonstrated in building this strong and credible business. GCI Com has scale, critical mass and significant potential to grow both organically and through further acquisition, which is in line with both the developments in the market and customers’ own requirements. Furthermore, the sector in which it operates is enjoying rapid growth due to the convergence of IT and telecoms, the move to cloud computing and corporate desire to outsource.

“In addition to providing growth capital, BGF offers guidance and access to a wide network of contacts and we look forward to supporting Wayne and his team as they take the business to the next stage of its development.”

Richard Bishop, BGF Head of Investments, commented:

“GCI Com is the first investment that BGF has made in the Midlands. We believe that there are many high quality businesses across the Midlands, like GCI Com, which have real potential but which have not obtained the funding that they need, and we therefore expect this to be the first of many BGF investments in the region. With capital at our disposal, we have the means to significantly expand the market for investment in small and medium sized businesses.

“This was an off market deal sourced by our Birmingham based team - Wayne and his team were not originally looking for equity investment. However, we are able to contribute more than financing alone and this made our offer compelling.”

BGF was advised on the deal by Wragge & Co and BDO and GCI Com was advised by Eversheds, Latitude Partners and Intuitus.

Contacts
Emily Weston, Equity Dynamics – 07825 326 442 emily@equitydynamics.co.uk
Corinna Osborne, Equity Dynamics - 07825 326 440 corinna@equitydynamics.co.uk

Notes to editors

About Business Growth Fund
Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses. Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital. As such BGF hopes to be a catalyst for growth among smaller UK companies.

BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.

BGF is managed completely autonomously with an independent management team.

BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and BGF works in close collaboration with the
British Bankers’ Association as well as other key business organisations across the UK.

www.businessgrowthfund.co.uk

About GCI Com
GCI Com provides inbound and outbound telephony and data services to medium sized corporates and smaller enterprise customers on a national basis.
Its services enable customers to outsource the provision of their communications connectivity and infrastructure, systems maintenance and usage billing to one single supplier and helps them to better manage inbound calls. Their software-enabled services, which maximise the value of telephone interactions, include monitoring, analysing and recording of calls as well as the provision of interactive voice response capabilities.

With its own fibre-optic communications network and state of the art data centres, the company also offers its customers a fully outsourced, cloud based solution for handling their IT and communications.

www.gcicom.net

London, New York, Amsterdam, 4th January 2012

One of the world’s fastest growing social video distribution companies, Unruly, has attracted $25m funding from Amadeus Capital Partners, Van den Ende & Deitmers and Business Growth Fund.

Unruly has delivered a number of high profile social video campaigns for global brands, including Evian’s “Roller Babies” and T-Mobile’s “Life’s for Sharing”.

The funding, which is the largest for a private company in the social video sector, is the company’s first institutional round and will be used to strengthen its European market leadership position, expand its already successful US business and establish a footprint in Asia.  Unruly is a profitable company, with 2011 revenues of $25m.

Established in the UK and headquartered in London’s Tech City, Unruly has since inception in 2006 become a multi award-winning global business, distributing sponsored video content for media agencies and brands through a network of over 10,000 publisher websites, platforms such as YouTube, Facebook and Twitter, influential blogs and mobile applications. Distribution currently reaches 725m unique users each month (see http://goo.gl/ahRhf for how it works).

Apart from its reach, which makes it one of the largest distribution platforms in the world, Unruly’s prime differentiator is the unique analysis it provides its customers, through a proprietary storehouse of video interaction data that enables the company to match content to the optimal publisher to achieve maximum brand engagement.  Unruly has delivered, tracked and audited 1.34 billion user-selected video views and executed more than 1,400 successful social video campaigns for some of the world’s leading global brands, including Unilever, EA, Adidas, T-Mobile and Coca-Cola.

Brands and agencies increasingly recognise the power of social video to build high-impact, long-term emotional connections with their audiences, influence consumers and ignite conversations. Social video campaigns are predicted to generate 20 billion views in 2012, with numbers rising each year.
 
“Unruly’s proprietary technology platform and aggressive global growth strategy in a fast-growing market is really impressive.” said Richard Anton, Partner at Amadeus Capital Partners. “We are delighted to be supporting the company build on its success, bringing our experience of building a number of international marketing and advertising technology companies, including Celltick, ComQi and EPiServer.”

“With global online ad spend set to reach $110 billion by 2014, representing more than 20% of total ad spend, and online video ad spend predicted to be the fastest growing category, we believe Unruly is strongly positioned to be the winner in the global social video market,” said Martijn Hamann, Partner of Van den Ende & Deitmers.

“In a short space of time, Unruly has played a major role in the explosive growth of social video and this investment gives it additional firepower,” said Marion Bernard, Regional Director for London and the South East at Business Growth Fund. “We look forward to working with the company and our co-investors to take advantage of the very significant global expansion opportunities.  BGF is working in partnership with other investors to expand the pool of investment capital to growing and ambitious UK companies as a key part of developing the entrepreneurial economy.”

“Today represents an important milestone for the company and social video as a whole,” said Unruly CEO and co-founder Scott Button. “Five years ago, we set out to help brands capture the massive opportunity in social video and we’re delighted that such a distinguished group of investors share our conviction.”

Richard Anton, Martijn Hamann and Marion Bernard all join the Unruly Board of Directors.  Together, the three investors hold a minority stake in Unruly.

Advisers on the investment were: Torch Partners and Orrick, Herrington & Sutcliffe LLP for Unruly Media and for the investors: Taylor Wessing/Berwin Leighton Paisner (legal), Baker Tilly Corporate Finance LLP (accounting due diligence), Hampton Court Capital (commercial due diligence), Transition People (management due diligence).

END

Chantal Ligertwood, PR for Amadeus: +44 (0)7976 229 210 chantal@ligertwood.net

Wendy Horlings, PR for Van den Ende & Deitmers, +31 20 794 77 77
wendy.horlings@endeit.com

Emily Weston or Jane Kirby, PR for Business Growth Fund, Equity Dynamics
+44 (0)7825 326 442/441 Emily@equitydynamics.co.uk / jane@equitydynamics.co.uk

Kayla Zerby, PR for Unruly, The Morris + King Company, (212) 561-7454
kayla.zerby@morris-king.com

About Amadeus
Amadeus Capital Partners is one of Europe’s leading technology venture capital firms, with £500m under management. Since its inception in 1997, the firm has backed nearly 70 companies in industries that include communications and networking hardware and software, cleantech, medtech, computer hardware and software, media, and e-commerce.  Major businesses built by the firm include CSR plc (LSE:CSR), the leading producer of single chip bluetooth radios for short range connections, Solexa Ltd, the developer of next generation genetic analysis systems, merged into Illumina, Inc. (ILMN) to create the world-leader in gene-sequencing technology and Transmode, a networking solutions business that had an over-subscribed IPO on NASDAQ OMX Stockholm in May 2011. 
For more information, please visit www.amadeuscapital.com

About Van den Ende & Deitmers
Van den Ende & Deitmers is the venture capital firm of Endemol founder Joop van den Ende and former Endemol board member Hubert Deitmers. The firm invests in European crossmedia enterprises that have the potential to grow internationally. Its focus is on Content, Platforms, E-commerce and related ICT services. Since the firm was established in 2006, it has invested in a variety of companies, including casual gaming platform Spil Games (number 1 worldwide), television producer Eyeworks (top 5 independent producer worldwide), online market research agency Metrixlab (top 5 worldwide) and online video advertising company Smartclip (number 1 in Europe, now part of Adconion). Last months, it invested in Improve Digital, Pictura and Quadia. Social network Hyves (number 1 in The Netherlands), contact centre Unamic/HCN (top 3 in Europe), online photoalbum producer Albumprinter (top 3 in Europe) and ICT hard- & software webshop CentralPoint (no 1 in The Netherlands) were successfully sold recently. 
For further information, please visit www.endeit.com

About Business Growth Fund
Business Growth Fund (BGF) has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such BGF hopes to be a catalyst for growth among smaller UK companies.
The investment in Unruly Media is BGF’s third investment since its launch in May 2011.
BGF an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  BGF is managed completely autonomously with an independent management team. 
www.bgf.co.uk  

About Unruly
Founded in 2006 and headquartered in London, Unruly is the global platform for social video advertising. With offices in New York, Paris, Sydney, San Francisco, Amsterdam, Stockholm, and Berlin, Unruly has delivered, tracked & audited 1.34 billion video views and executed 1,400+ successful social video campaigns for global brands and agencies including T-Mobile’s acclaimed Life’s for Sharing series, Evian’s global Roller Babies hit, Old Spice’s game-changing “Man Your Man Could Smell Like” campaign, Coke’s Happiness series and Google’s Search Stories.
Reaching an audience of 725 million monthly unique users, Unruly distributes social video campaigns across platforms including YouTube, Facebook, Twitter, premium publisher sites, influential blogs and mobile applications.
For more information, visit www.unrulymedia.com.

David and Neil join Regional Director, Andy Gregory, at the Manchester office, which opened in September.  Their appointment brings the BGF team to 50 people, working from six regional offices across the UK. 

David was formerly a Director with 3i with responsibility for the Manchester office and has over thirteen years’ experience of investing in SMEs across the northern region.  Neil was an Investment Manager at ANZ Private Equity in Sydney, and formerly located in the North of England with PriceWaterhouseCoopers

Since its launch in May, BGF has scaled its local capabilities so as to be able to meet its long-term objective of offering equity investment to up to 40 businesses a year once fully established, and contributing to the growth of the UK economy.

BGF makes long-term equity investments to fund a wide variety of requirements, including:  increasing working capital, capital to make a strategic acquisition or to grow capacity; delivering a step change in sales and marketing; launching an export drive; or, developing new products. BGF operates in partnership with businesses, investing between £2m and £10m in return for a minority equity stake.

David Colclough, Investment Director at BGF, commented:

“The current outlook for small and medium sized business is undoubtedly challenging, but BGF has been set up to provide much needed support and long term funding to companies with the ambition to grow. I am confident BGF can make a real difference to the northern region and more broadly across the UK, and I am delighted to be joining the team.”

Andy Gregory, BGF Regional Director for the North of England and Northern Ireland, commented:

“It is great to welcome David and Neil to the team and to strengthen our presence in this region.  We are seeing a strong pipeline of opportunities across the region and are keen to put our capital to work so that businesses in this region have access to the finance they need to grow.”

“We urge business owners in the North of England and Northern Ireland to act on their growth ambitions and consider how best they can be financed for the future.  At BGF we believe that equity has always been one of the most effective ways to fund a growing business and as equity investors, with interests aligned with those of business owners, we will work hard to further the growth potential of our investee companies.”

Ends

Contacts:

Emily Weston, Equity Dynamics – 07825 326 442 / emily@equitydynamics.co.uk
Jane Kirby, Equity Dynamics - 07825 326 441 / jane@equitydynamics.co.uk

Notes to editors:
Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such BGF hopes to be a catalyst for growth among smaller UK companies.

BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  BGF is managed completely autonomously with an independent management team.   

www.businessgrowthfund.co.uk

BGF has invested £4.25m of growth capital in Statesman and will take a minority stake and a seat on the board. BGF investment, together with additional funds from existing shareholders and support from Lloyds Banking Group, will enable the strategic acquisition of Commodore Travel (Commodore) and will make the combined entity one of the top 10 UK travel management companies in terms of transactional volume, with revenues approaching £100 million.

Statesman was introduced to BGF by Lloyds Banking Group, one of the Fund’s shareholders.

Statesman was acquired in 2007 by its current management team, Joint Managing Directors Mervyn Williamson and Jon Langley, both of whom have had significant experience in the travel sector and led the management buyout of Phoenix Travel Group, together with its subsequent sale to TQ3 Travel Solutions in 2003. Non Executive Chairman Eric Brannan is an experienced travel industry veteran, having held senior roles at American Express and Hogg Robinson, and has worked closely with the management team since 2001.

In a difficult market, Statesman has increased sales by well over 50% since the acquisition and has grown staff numbers from 40 to 75. The combined group will have a staff of c. 150 employees. The company has a blue chip customer base with strong representation from the financial services, professional services, property and media sectors. 

Statesman is known for its high levels of service and for seeking out and applying innovative solutions to set the industry standard in service delivery. Recently the company formed a strategic partnership with a leading provider of travel and expense management solutions to offer clients automated expense reconciliation, providing a saving for its clients of approximately 70% per employee expense claim. It has also introduced the use of online applications to enable its business users to get up-to-the minute information on flights and trains.

According to the World Travel & Tourism Council, UK business travel and tourism spending is expected to total £26.2 billion in 2011 and to grow by 4-6% per annum over the next five years.

Stephen Welton, CEO of Business Growth Fund, commented:

“Statesman Travel Group is a brand built on old fashioned quality of service, combined with a highly innovative approach to new technology. This has enabled the management team to secure a market leading position and to acquire another industry player, to add to its blue chip client base and to expand its international capability. The business has also grown because of its ability to attract large corporate clients needing to keep a tight control on spending on travel and entertainment.”

“This is BGF’s second investment and demonstrates that we are now very much open for business. In some ways the two deals illustrate the breadth and variety of companies and circumstances in which BGF will invest. Both companies share one very important thing - a proven and dynamic management team with a clear plan to grow their business.  We hope that other fast growing companies will see how our approach to partnership investing might also help them. With a team of 50 people and five offices across the UK, we now have an established presence nationwide and we urge businesses to come and talk to us.”

Stephen Welton added:

“We are delighted that one of our shareholders, Lloyds Banking Group, has played an important role in this investment.  They have enjoyed a long relationship with Statesman and know the business well, and this key acquisition allows them to expand that relationship still further.  This is indicative of how BGF can work in partnership with banks to unlock more credit for SMEs whilst also ensuring a well capitalised and properly funded long term balance sheet.”

Mervyn Williamson, Joint Managing Director of Statesman Travel, commented:

“BGF has a compelling offering that will enable us to take our business to the next level.

We wanted an investor, that would not only provide growth capital, but that would work alongside us as a partner over the long term.  Commodore Travel is a well-established business with whom we have much in common.  Together we can be a potent force in the travel management sector, optimising the service that we offer our existing clients as well as additional international companies in the future.”

Ends

Advisers to the transaction:
For BGF: DLA Piper
For Statesman Travel: Collyer Bristow, and Smith & Williamson
For Lloyds Banking Group: Field Fisher Waterhouse LLP
For Commodore Travel: Mishcon de Reya

Media contacts:
Emily Weston, Equity Dynamics – 07825 326 442
emily@equitydynamics.co.uk
Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk
Jon Rhodes, Director of Marketing & Communications for BGF
07974 982 334 / jon.rhodes@bgf.co.uk

Notes to Editors:

Business Growth Fund
BGF has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such BGF hopes to be a catalyst for growth among smaller UK companies.
BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  BGF is managed completely autonomously with an independent management team.
BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.
www.bgf.co.uk

About Statesman Travel
Established in 1975, Statesman is rated in the ‘top 20’ list of U.K. Travel Management companies and from its headquarters in central London, provides a global service through its partnership network, Travel Solutions International (TSI), with locations in North America, Europe, Africa, Middle East, Far East and the Southwest Pacific.
Clients include public sector organisations as well as blue chip multi-national companies and SME’s. Dedicated teams are in place for key clients specialising in Law, Financial Services, Property, Mineral Resources and International Consultancy, plus there is a strong emphasis on ‘1 to 1’ relationships with smaller account holders.
Statesman’s service ranges from the traditional to the technically advanced and their customers choose the configuration that best suits their needs.
www.statesmantravel.com

The BGF has invested £4.2m of growth capital in Benefex and will take a minority stake.  With over 50% growth in turnover year on year, Benefex continues to expand rapidly with turnover approaching £10m in 2012. 

The company is led by Matt Waller, a 33-year-old entrepreneur, who started the business from his own home when he was just 25, and has grown it to become one of largest online employee reward and benefits providers in the UK.  The company currently provides services to over 500 clients, managing online benefits schemes for over 1 million employees in more than 40 countries.  Its clients include the AA, Coca Cola, Bank of America Merrill Lynch, De Beers, E.ON, Philips, MTV and Centrica. It operates from its head office in Southampton, with a further presence in Marlow and London.

The market in which Benefex operates is enjoying rapid growth.  Many employers are looking at how best to attract, retain and motivate their staff and recognise the value of flexible rewards and benefits packages that can be tailored to the needs of the individual.  This market is believed to be worth in the region of £100 million and is growing at nearly 10%.  These arrangements are often complex, particularly for large companies, which in turn is driving demand for outsourced services. 

Service providers which offer technological support are outperforming the market, growing at twice the rate at some 20%.  This is due to an increasing need for technological support, use of online and intranet services and imminent legislative changes.  For example, from October 2012, all employers will have to enroll eligible workers into workplace pension schemes, generating a clear need for online services.

The BGF’s investment will enable Benefex to continue the development of innovative solutions, expand its product and service lines and extend its international footprint.  Immediate opportunities exist in the US and Asia Pacific.

As a result of this investment, Benefex expects to create a further 100 jobs in Southampton, Marlow and London.

Paul Oldham, BGF Regional Director for the South West and Wales and now a member of the Benefex board, commented:

‘Benefex is an exciting business, led by a talented and entrepreneurial management team.  A start up just eight years ago, it has created a strong market position, developed its service offering and built an impressive client base.  It has exhibited consistent growth in tough economic conditions.

The employee benefits reward market is growing explosively due to legislative change and international demand and Benefex is uniquely positioned to capitalise on this due to its highly innovative approach to technology and customer service.

We look forward to working with Matt Waller and the management team to create the world’s leading provider of online employee rewards and benefits.”

Paul Oldham on the Benefex Deal

Matt Waller, the CEO of Benefex and the first entrepreneur to be backed by the BGF, commented:

“We come from entrepreneurial, ambitious roots.  We recognised that the business had reached the point where we needed external capital to take it to the next level and invest in key areas.  Without it, we would continue to grow but not at the rate that we would like to. 

Having grown the business from startup, it was critical for us to find the right partner.  We chose to work with the BGF because we felt that they shared our enthusiasm and ambition and offered more than just money. 

We also believe in what they stand for and that they can provide high growth businesses like ours with the funding to continue to contribute to the recovery of the UK economy.” 

Matt Waller on the Benefex Deal

Stephen Welton, CEO of the BGF commented:

“Benefex is the first of many investments that we will be making in fast growing UK businesses.  It typifies the sort of business that we are interested in speaking to.

Since our launch we have been actively out in the market talking to business owners and are now seeing a high level of deal flow.  It shows a real and growing demand for a long term partner investor.”

Stephen Welton on the Benefex Deal

Reading based Spectrum Corporate Finance introduced Benefex to the Business Growth Fund.

Ian Milne, partner at Spectrum Corporate Finance, said:  

“We were delighted to work with the Business Growth Fund on their first investment and to introduce them to the team at Benefex.  Benefex operates in a dynamic sector with a market-leading proposition and is led by an entrepreneurial and innovative management team.  The new investment by the Business Growth Fund will enable the business to capitalise on exciting new development opportunities in its market place both in the UK and overseas and so continue its impressive record of growth and new job creation.”

To view a video of the announcement, please Click Here

Ends

High resolution images are available for the media to view and download free of charge from http://www.vismedia.co.uk

Advisers to the transaction:

•  Spectrum Corporate Finance (Lead advisers)
•  RSM Tenon (Vendor financial due diligence)
•  RPL (Commercial due diligence)
•  Catalysis (Management due diligence)
•  Osborne Clarke (BGF)
•  Shoosmiths (Benefex)
•  HSBC (Clearing bank to Benefex)

Media contacts:

Emily Weston, Equity Dynamics – 07967 838 205
emily@equitydynamics.co.uk

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Jon Rhodes – Director of Marketing & Communications
07974 982334 / jon.rhodes@bgf.co.uk

Notes to Editors:

The Business Growth Fund

The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.

The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.
http://www.businessgrowthfund.co.uk

Benefex

Benefex are one of the largest online reward and benefits providers in the UK. Since 2003 they have worked tirelessly to evolve online Reward & Benefits. Working with over 500 clients and more than 1 million employees, Benefex deliver fully integrated Reward, Benefit and Pension portals including Total Reward, Flexible Benefits, Savings, Education, Broking and their new Auto-Enrolment product - Enroller™.

Benefex’s RewardEvolution™ methodology means that whatever a client’s strategy, Benefex can design, execute, support and evolve it’s Reward & Benefits. Key clients include: Bank of America Merrill Lynch, Centrica, Coca-Cola, E.ON, Philips, The AA and MTV.

The business has been nominated for over 20 awards in the last 5 years including Most Effective Benefits Strategy, 2009 (HR Excellence) and Best Corporate Advisor, 2010 (Money Marketing).  Most recently, Benefex has been short listed as a finalist for Best Use of Technology in the Fast Growth Business Awards 2011.

http://www.benefex.co.uk

Spectrum

Spectrum Corporate Finance is an independent advisory firm established by an experienced team of entrepreneurial partners to fulfill a demand for high quality value added and independent advice.  Deal values are typically in the range of £5 million to £100 million over a broad range of sectors and deal types to include company sales, buy-outs, development capital raising and debt advisory.

http://www.spectrumcf.co.uk

Simon’s appointment closely follows the appointment of local Investment Director, Duncan Macrae.  The team will continue to grow and is indicative of the fund’s commitment to the region.  In August the BGF also announced the appointment of well known Scottish businesswoman, Audrey Baxter, CEO of Baxters Food Group, as a Non Executive Director. 

Simon has 20 years’ experience advising and investing in companies, predominantly in the oil and gas industry. He spent eight years with RMD Corporate Finance before leaving as part of a team of five to establish the European office of Simmons & Company International, the boutique energy investment bank. He then spent a year in Hong Kong in JPMorgan’s Oil and Gas Industry Team.  In 2002, Simon joined Lime Rock, the specialist energy private equity firm, to help establish its presence in Europe.

With nearly 300,000 private enterprises employing two million people, Scotland is well placed to see the private sector drive growth out of recession.  99% of those 300,000 private businesses are small and medium sized enterprises which in turn account for nearly 53% of Scottish employment.

Simon Munro, Regional Director for Scotland, commented:

“I am absolutely delighted to be joining the Business Growth Fund.  Small Scottish companies with annual turnover in the £5m to £50m range have in recent years struggled to attract the capital they need to invest and grow.  Being part of a substantial fund, specifically designed to address that funding gap, is a very exciting prospect.  With my background of investing in oil and gas, I am keen to quickly establish the fund as a supporter of the sector. Further recruitment to provide the presence which we will need to work closely with companies in the oil and gas industry is a key part of the plan.  Through our team in Edinburgh we already have healthy deal flow and are active on a number of very interesting opportunities. My sense is that there are many high quality businesses in Scotland which have real potential but which have fallen through the funding cracks. Those are the businesses which we are here to support.”
Simon is the fourth regional director to join the BGF. It comes at a time of rapid growth for the fund, which now has five offices across the UK and a national headcount of nearly 60 people.  Earlier this month, it announced the appointment of Regional Directors for the North of England and Northern Ireland and for London and the South East. The BGF is in advanced conversations with a number of companies and expects to announce its first investments in the near future.

BGF CEO, Stephen Welton, commented:
“The Scottish market is an important one to us.  Now that Simon is in place we will be even more actively talking to local businesses and advisers about what we can offer.  We are seeing a strong pipeline of opportunities which demonstrates growing nationwide demand from smaller and medium sized businesses for patient capital and a partnership approach to investment.  We believe we can bring a lot to the table over and above finance and we would urge Scottish businesses to come and talk to us.”

Ends
Contacts:

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk
Emily Weston, Equity Dynamics – 07967 838 205
emily@equitydynamics.co.uk

Notes to editors:
The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.

The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Banker’s Association as well as other key business organisations across the UK.
www.businessgrowthfund.co.uk

The BGF also announced today that it has opened its fifth office in Manchester, where Andy Gregory will be based. 
 
Previously Andy Gregory was an Investment Partner with Key Capital Partners, based in Manchester.  He has significant experience of investing in the region, having formerly worked at the Manchester offices of ISIS Equity Partners, Bridgepoint and Royal Bank Development Capital.  He also has successful industry experience, having participated in the acquisition and development of Manchester based retail software company, Pennine Retail Systems Ltd, as Group Finance Director.

Marion has eighteen years’ experience of funding small and medium sized businesses from across the UK.  Most recently she served as Chief Executive of Northstar, a venture capital company actively investing in the North East of England, where she had overall responsibility for over 50 equity investments across a range of sectors including technology, media, healthcare, and cleantech.  Prior to Northstar, Marion gained banking and venture capital experience with Barclays and 3i in London.
 
Stephen Welton, Chief Executive of the BGF, commented:
“Andy and Marion have significant experience of creating, building and supporting small and medium sized businesses in key UK regions. Their combined contacts and relationships, established over many years in major cities like Manchester, Leeds, and Newcastle, will enable us to really accelerate our efforts in these important local economies.  With their help we look forward to finding and funding fast growing companies and talented management teams who can become star businesses of tomorrow”.

He added:  “Our Manchester office is the fifth to open since our launch, and with Andy’s help, we look forward to becoming an active member of the local business community. The fund is making good progress in building its infrastructure, well ahead of plan, and we are strongly positioned to start putting our capital to work.”

Andy Gregory, BGF Regional Director for the North of England and Northern Ireland, commented:
“I have worked in the North of England for many years and know it well.  There are many businesses here that could benefit from the financial support and expertise that the BGF is offering as a partnership investor.  I would urge businesses owners to come and talk to us.  They will find our style direct and straightforward and our interests very much aligned with their own.”

Marion Bernard, BGF Regional Director for London and the South East, commented:
“Over the last 18 years, I have worked closely with a wide range of small and medium sized businesses and have seen at first hand the benefits that investment has brought them.  SMEs are known as the engine room of the UK economy.  The UK boasts talented entrepreneurs and fantastic businesses with great potential but recent economic conditions and reduced levels of available funding have made it challenging for many of these to grow as fast as they would like.  It is against this backdrop that the BGF is offering guidance, partnership and patient capital to fast growing businesses – a huge opportunity, which I am very excited to be part of.”
The fund has appointed three regional directors since its launch in May 2011. Paul Oldham, Regional Director for the South West of England and Wales joined in July.  Two fFurther regional appointments are set to be made this year. The BGF’s nationwide headcount now stands at 46 people.

Ends

Contacts:

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Emily Weston, Equity Dynamics – 07967 838 205
emily@equitydynamics.co.uk

Notes to editors:
The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.
The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.
www.businessgrowthfund.co.uk

BGF CEO, Stephen Welton, said: “Jon joins the BGF at a crucial time as we are soon to announce our first investments.

“Like the other members of our senior team, Jon will be working with our investee companies to offer first rate counsel, fitting with our self adopted mandate to provide the businesses we back with more than just money.

“It is unlikely that those businesses will have had the opportunity to receive strategic communications advice from such a skilled and experienced professional.  It is this approach that will enable the BGF to help build the big business brands of the future.”

Commenting Jon said: “This is an exciting time for the BGF and a critical time for the UK economy.

“BGF’s success will be built on the close relationships we can build with businesses across the UK, and with the communities of which they are a part. Fast growing businesses need to be properly aware of what is on offer and how the BGF can help them fulfill their potential. First class communications lies at the heart of this process.

“In a very short period of time Stephen has assembled an experienced and talented team. It will be a privilege to be a part of it.”

Jon, a specialist in corporate reputation, most recently built and ran Brunswick’s growing public affairs practice in London. He has worked across a spread of international blue-chip companies and UK SMEs. He began his career with the Labour Party, where he worked as a policy adviser and speechwriter for Shadow Cabinet members for four years up to the General Election of 1997. After the election, Jon joined PolyGram Filmed Entertainment where he worked on press and public affairs issues, and in particular was the chief ‘industry’ author of the Government’s 1998 White Paper on the future of the British film industry.

He holds a degree in Government and Economics from the London School of Economics, a masters degree in European Politics and Policy Making and an MBA from London Business School.

This appointment is illustrative of the fresh approach that the BGF brings to the smaller company sector, as an active partner providing both capital and advice.     

Ends

Contacts:

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Emily Weston, Equity Dynamics – 07967 838 205
emily@equitydynamics.co.uk

Notes to editors:
The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.


The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.

The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.
www.businessgrowthfund.co.uk

Duncan’s main role will be to identify investable businesses in Scotland and the North of England, successfully execute these investments for the Fund and support those companies as a board member.  He will also play a key role in building a wider team that will drive investment across the region.  This is the most recent in a series of appointments made by the fund and comes at a time of rapid growth for the BGF, which now employs a team of 44 nationwide.

At the Edinburgh office, Duncan joins Business Director, Mark Bryant.  Appointed in May, Mark is an experienced CEO who has managed and grown a number of manufacturing businesses and will play a major role in mentoring and supporting the fund’s investee companies.

Earlier this month, the BGF also announced the appointment of Audrey Baxter, CEO of Baxters Food Group, as a Non Executive Director.  Her first hand experience of building her company in the UK and abroad and of managing a fourth generation family business has clear relevance to businesses in Scotland and throughout the UK.

These appointments are illustrative of the fresh approach that the BGF brings to the smaller company sector, as an active partner providing both capital and advice.   
 
Business Director, Mark Bryant said:
“Duncan is an excellent addition to our team, bringing financial expertise but also invaluable hands-on experience of working at the coalface within a business.  Our job is to build confidence within good businesses that need help to grow and to nurture in them an entrepreneurial spirit.  To do this we must offer more than just money – partnership, expertise and contacts are equally as important.”

Duncan Macrae said of his appointment:
“From my former role in the retail sector, I know first-hand the challenges that are involved in managing growing a businesses in today’s challenging market conditions.  I also see the huge potential that is latent in the Scottish and North of England markets.  The unparalleled resources and in-house expertise provided by the fund give me a great opportunity to capitalise on this and make a real difference to the businesses that we invest in.”

With nearly 300,000 private enterprises employing two million people, Scotland is well placed to see the private sector drive growth out of recession.  99% of those 300,000 private businesses are small and medium sized enterprises which in turn account for nearly 53% of Scottish employment.

BGF CEO, Stephen Welton, commented:
“We recognise the importance of Scottish businesses and the Scottish economy and are committed to building a strong team to support investment in the region.”
Ends

Contacts:

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Emily Weston, Equity Dynamics – 07967 838 205
emily@equitydynamics.co.uk

Notes to Editors:

The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.
The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.

www.businessgrowthfund.co.uk

Sir Nigel Rudd, Chairman of the BGF said:
“The Business Growth Fund is much more than a plain vanilla equity investment company. In addition to long-term capital investment, we will offer our investee companies the opportunity to meet and be guided by some of the most experienced business men and women and investment experts in the UK.  I am delighted to welcome Audrey, Stephen, Neil and John to the board of the Business Growth Fund.  Together with our shareholder Directors, the BGF board now has an unrivalled combination of investment, banking and business experience to help guide and shape our work for years to come.”

Stephen Welton, Chief Executive of the BGF said:
“All four of our new non-executive directors have first hand experience of leading and growing businesses in the UK and abroad. There is a clear focus on being relevant to business at a local level across the country; a recognition that many of our investments will come from families; and a desire to reach out and nurture a spirit of entrepreneurial success. Their expertise and input as board members will be invaluable to the BGF and to our investee companies. Businesses need to understand that securing investment from the BGF is about more than just money.  Our partnership approach and sharing of expertise, guidance and contacts will be almost as valuable as the cash we inject into their businesses. Confidence as well as aspiration are key watchwords of the BGF.”

Biographies for all four of the BGF’s new non-executive directors are listed below.

The Business Growth Fund was launched in May 2011 and is now actively engaged in meeting and assessing the investment potential of dozens of UK companies. 

The BGF will invest between £2m to £10m in established businesses that can demonstrate their ability and desire to grow their companies rapidly, given the right investment and support.  Successful companies will have been established for enough time to reach critical mass and to have demonstrated and achieved levels of high growth with outstanding potential.  They will need to have a proper business plan and a clear idea of how they might use the BGF’s investment to grow their business over the long term.

-ends-

Contact:
Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Dr Audrey Baxter, Executive Chairman, W A Baxters and Sons. 
Following a successful early career as a Merchant Banker in London, Audrey returned to the family business in 1988.  She became Chairman and Chief Executive of the company in 2000.
In 1868 company founder George Baxter borrowed £100 from relatives to open a small grocery shop in Fochabers.  As well as selling groceries, George’s wife Margaret started making jams and jellies in the back of the shop.  The quality of her products quickly led to increased demand.  Today, 130 years later, Baxters is a global company, with operations in Eastern Europe, Australia, South Africa, and North America.  When Audrey joined the business in 1990 turnover was £17m. Since becoming CEO, she has grown the business by more than 50 percent, with turnover currently at £147m.  Audrey is the fourth generation of the Baxter family to run and expand the business into new markets. She is passionate about food and the quality of all products produced in Baxters’ growing number of factories.
Audrey grew up in Scotland, going to school in St Andrews and then studying business at Heriot-Watt University in Edinburgh.  She is also Non-Executive Director of transport operator First Group plc and a Member of the Court of Aberdeen University.

Stephen Murphy, Group Chief Executive Officer, Virgin Management SA
In 2005 Stephen Murphy was appointed as CEO by billionaire entrepreneur Richard Branson to lead one of the most iconic global brands – Virgin.

Stephen joined the Virgin Group in 1994 with a remit from Richard Branson to rationalise and restructure the business following the sale of Virgin Music. In 2000 he briefly left the Group to became CEO of IP Powerhouse, but rejoined Virgin in 2001 to take responsibility for all of Virgin’s aviation and rail interests. Stephen has overseen the creation of many new Virgin businesses including Virgin Blue in Australia and Virgin America in the US.

In total, Virgin has created more than 300 branded companies worldwide employing 50,000 people in 30 countries. Global branded revenues for the Group in 2010 exceeded $20 billion, and the company is valued at $3.5bn. Stephen has extensive experience of working with entrepreneurs across a variety of sectors.

Stephen completed his schooling and went to university in Liverpool, later qualifying as a chartered management accountant. His early career was in fast moving consumer goods (FMCG) and retail with stints at Unilever, Mars Group, Burton Group and Quaker Oats.

John Burgess, Co-Founder, BC Partners, Non-Executive Director, C&C Group Plc.
John Burgess has had a long and distinguished career as a private equity investor, during which he was a non-executive Director of a number of UK and European-based businesses, both large and small.  He is currently Chairman of the External Investment Committee of Partners Capital, a wealth management firm, and a Non-Executive Director of C&C Group, which owns the Magners and Gaymers cider brands and Tennent’s beer. 

He was a Co-Founder and Managing Partner of BC Partners until he retired in 2005. BC Partners is a leading European private equity firm that has played a major role in the development of the large buy-out market in Europe over the last 25 years. Since its formation in 1986, BC Partners has invested through the acquisition and development of over 70 companies with total enterprise value of €65bn. Prior to BC Partners, John developed his private equity experience with Candover Investments and F&C Ventures, following 8 years with the Boston Consulting Group in Paris and London. He holds an MA in Engineering from the University of Cambridge and an MBA from the INSEAD Business School.

Neil Johnson, Chairman, Motability Finance Ltd, Chairman, Hornby Plc, Chairman, Umeco Plc
Neil Johnson is currently Chairman of Umeco Plc, an aerospace and defence advanced composites engineering company, and Chairman of the international model and toy company Hornby Plc, which also owns the Scalextric, Airfix and Corgi brands. He also Chairs Motability Operations Plc, a major finance and leasing company owned by the UK banks. He was formerly CEO of the RAC and has participated in a number of ‘turnaround’ situations of listed and private companies. He Chaired telematics company Cybit Plc through IPO and ultimate sale to a US Private Equity house in 2010. After directing the European automotive interests of British Aerospace, he served a term as Director General of the Engineers Employers Federation [EEF] and later set up a Trans-Atlantic trade and business promotion body, British-American Business Inc.

Welsh born, he was educated in Cardiff and later at the Royal Military Academy Sandhurst. Following an early career in the Army he took on a series of senior roles within Lex Service Group, British Leyland, Jaguar and Land Rover. In the mid ‘80s he was seconded to the Ministry of Defence and Commanded 4th Battalion The Royal Green Jackets, then forming part of 12th Armoured Brigade in Germany. He currently sits on a Ministry of Defence Advisory Board, is Trustee of a number of Charitable bodies and an Independent Member of the Metropolitan Police Authority.

Notes to editors:
The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.

The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Banker’s Association as well as other key business organisations across the UK.

www.businessgrowthfund.co.uk

Selected by the BGF for their extensive corporate expertise, both directors will work closely with investee companies in a mentoring role and will contribute to due diligence undertaken by the fund ahead of investment, in addition to applying their professional experience to the management of the fund itself. This reinforces the fresh approach that the BGF brings to the smaller company sector, as an active partner providing both capital and advice.

BGF CEO, Stephen Welton, said: “As highly experienced professionals John and Jenny will enhance the capabilities that we have under our roof – both in terms of the insight they bring to the investment process, and making a positive contribution to our investee companies.

“Ultimately we are seeking to offer fast growing UK businesses significant capital combined with superb counsel. The BGF is more than just about money”

He added: “Our approach is unusual at this end of the market, and offers smaller growing companies what they need most.”

These appointments come at a time of rapid growth for the BGF, which now employs a team of 36 and follow the appointment in May of the BGF’s first Operating Partner, Mark Bryant, an experienced engineer and industry executive who will also play a major role in mentoring the fund’s investee companies.  Mark has a successful career of managing and growing a number of manufacturing and operating businesses and can now bring that experience to bear across the BGF’s portfolio.

John Eggleston, BGF IT Strategy Director, added: “There is no other company quite like the BGF, using internal experts, with significant experience providing hands on help in this segment of the market, to the future success stories for UK plc.”

Jenny Chandler, BGF human resources director, said: “I was attracted to the vision and ambition of the Business Growth Fund.  This is a fantastic opportunity to work with a variety of fast growing UK business, all with a common desire to grow.  As a business partner and investor, we are in a strong position to help them achieve their goal and I am tremendously excited to be playing a part in it.”

Jenny Chandler and John Eggleston will split their time between the BGF’s Birmingham and London offices, while Mark Bryant is based in Edinburgh.  All three executives will work across the fund’s UK regional network.

Contacts:

Emily Weston, Equity Dynamics - 07967 838 205
emily@equitydynamics.co.uk

Jane Kirby, Equity Dynamics - 07825 326 441
jane@equitydynamics.co.uk

Notes to Editors:

Biography of John Eggleston, IT Strategy Director:

John Eggleston has held a number of senior IT roles, creating and managing critical technology-led services across diverse sectors. This has included 12 years at Callcredit Group, latterly as group CIO, where he architected the technology and led the IT teams through rapid growth.

He has conducted extensive investment due diligence, integrated businesses, led IT M&A for Skipton Building Society’s acquisitions, started the UK’s 3rd credit reference agency from inception and taken the group through a £100m MBO alongside private equity partners.

John is a Chartered IT Professional and Certified in the Governance of Enterprise IT, holding fellowships at the Institute of Directors, Institute of Leadership & Management and BCS, and the Chartered Institute for IT.

Biography of Jenny Chandler, Human Resources Director:

Jenny Chandler has over 20 years’ HR experience in a number of different sectors. She started her career in food manufacturing with Nestlé and subsequently moved to JP Morgan, developing her knowledge of the financial services sector. More recently she has held significant HR leadership roles in accountancy, investment management, management consultancy and real estate consultancy.

In addition to leading internal HR teams in the delivery of strategic and operational advice, a key element of Jenny’s most recent roles has been the delivery of services to external clients.

Jenny is a Fellow of the Chartered Institute of Personnel & Development (FCIPD).

Biography of Mark Bryant, Operating Partner:

As Operating Partner of the BGF, Mark will assist the investment team to assess the operational capability/opportunity of potential investees. Post-investment he will work closely with the existing management team to ensure maximum profitable growth is achieved. Mark will work to strengthen and deepen the operating resource to ensure BGF provides the best added-value support for its investees. In the short-term he will also help establish the BGF in Scotland.

Mark has had 30 years’ experience in Industry, primarily as the Managing Director/CEO of a number of manufacturing businesses, ranging from instrumentation, sensors to rigid plastic packing, covering sectors from aviation, automotive to process, oil & gas to personal care, test and metrology. Export throughout the world has been a consistent aspect of these companies. Mark has sold a number of the companies he has led and has successfully integrated bolt-on acquisitions. He is married with two children and lives in Edinburgh. He has a BA (Hons) in Business Studies from Middlesex University.

About the Business Growth Fund:

The Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses.  Growth potential is the key criteria. The BGF will invest approximately £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies that today do not have access to this source of capital.  As such the BGF hopes to be a catalyst for growth among smaller UK companies.

The BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.  The BGF is managed completely autonomously with an independent management team.

The BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and the BGF works in close collaboration with the British Bankers Associates as well as other key business organisations across the UK

www.businessgrowthfund.co.uk

Stephen Welton, CEO of the Business Growth Fund, said:

“While it is still early days for the Business Growth Fund, we are making good progress in our aim to establish a presence in key regions across the UK.  This regional presence will allow us to get to know businesses well and work closely with those that we back.  Our opening in Bristol is a key milestone and we are delighted to welcome Paul as a senior member of our investment team.  We look forward to finding and investing in the Welsh and South West business stars of tomorrow.”

The BGF has been established to help fast-growing UK businesses achieve their full potential and play their part in securing Britain’s long term economic recovery. 

The fund is looking to back smaller and medium sized businesses from across the UK with an annual turnover of approximately £10 million - £100 million.  Businesses that meet the BGF’s investment criteria will be offered long term capital of around £2 million to £10 million, in return for a minority equity stake in the company and a seat on the board for a BGF director.

Finance Wales has the funds to invest up to £2million of debt and equity in Welsh businesses.  The BGF aims to increase the available finance for growing businesses in Wales and the UK as whole.

Paul Oldham will have also have overall responsibility for developing relationships with businesses located in South Wales and the South West of England, and for successfully executing fund investments in the region.  Paul will also sit on the board of some of the Fund’s investee companies and is a member of the BGF’s national investment committee.

Paul Oldham, Regional Director for the South West and South Wales, commented:

“I am very excited to be representing the BGF in South Wales and the South West of England.  I know, from the many years that I have spent in the region, that it is home to a wide range of growing businesses.  We are looking to support those businesses that fit our criteria and have the ambition, dynamism and drive to grow, in turn creating new jobs and revitalising the local and national economy. 

Working closely organisations such as Finance Wales, we are aiming to bring something new to the market and to broaden the financial options available to Welsh businesses.  We will offer growth finance to business owners who want access to capital but do not want to sell; we will take minority stakes; we are not under pressure to exit within a certain time frame. We are an active partner offering capital and advice. “

Paul was formerly the head of LDC’s Bristol office, a South West Corporate Finance partner at Grant Thornton and a Director of the Cardiff and Bristol offices of 3i, where he spent thirteen years.  During his career, he has been involved in over 40 equity investments in small and medium sized businesses.  Paul has lived in Cardiff for thirteen years.

The BGF team currently totals 34 people, and is actively recruiting experienced investment professionals across the UK.

“While it is still early days for the Business Growth Fund, we are making good progress in our aim to establish a presence in key regions across the UK. This regional presence will allow us to get to know businesses well and work closely with those that we back.  Our opening in Bristol is a key milestone and we are delighted to welcome Paul as a senior member of our investment team.  We look forward to finding and investing in the South West and Welsh business stars of tomorrow.”

The BGF has been established to help fast-growing UK businesses achieve their full potential and play their part in securing Britain’s long term economic recovery. 

The fund is looking to back smaller and medium sized businesses from across the UK with an annual turnover of approximately £10 million - £100 million.  Businesses that meet the BGF’s investment criteria will be offered long term capital of around £2 million to £10 million, in return for a minority equity stake in the company and a seat on the board for a BGF director.

Paul Oldham will have overall responsibility for developing relationships with businesses located in the South West of England and South Wales and for successfully executing fund investments in the region.  Paul will also sit on the board of some of the Fund’s investee companies and is a member of the BGF’s national investment committee.

Paul Oldham, Regional Director for the South West and South Wales, said:
“I am very excited to be representing the BGF in the South West and South Wales.  I know, from the many years that I have spent in the region, that it is home to a wide range of growing businesses.  We are looking to support those businesses that fit our criteria and have the ambition, dynamism and drive to grow - in turn creating new jobs and revitalising the local and national economy. 

We are aiming to bring something new to the market and to broaden the financial options available to businesses.  We will offer growth finance to business owners who want access to capital but do not want to sell; we will take minority stakes; and we are not under pressure to exit within a certain time frame.  We are an active partner offering capital and advice. “

Paul was formerly the head of LDC’s Bristol office, a South West Corporate Finance partner at Grant Thornton and, a Director of the Cardiff and Bristol offices of 3i, where he spent thirteen years.  During his career, he has been involved in over 40 equity investments in small and medium sized businesses.

The BGF team currently totals 34 people, and is actively recruiting experienced investment professionals across the UK.

Sir Nigel Rudd, Chairman of the BGF described it as an exciting start for the new £2.5 billion equity investment fund. Officially launching the new company in front of the Business Secretary Dr Vince Cable, British Bankers’ Association CEO Angela Knight, senior bank bosses, business leaders and business advisers in Birmingham, Sir Nigel said: “I believe the Business Growth Fund offers a real ray of hope to companies that are emerging out of recession. Companies that have the confidence, ambition and ability to seize new opportunities and new markets in the UK and abroad.  Our ambition is nothing less than to create the household business names and listed companies of tomorrow.”

Chief Executive Stephen Welton added: “Barely eight months ago, in October 2010, the Business Growth Fund began life as a 37 word sentence published in the Business Finance Taskforce report.  Today it is open and ready for business. We have three offices in Edinburgh, Birmingham and London;  nearly 30 staff, FSA authorisation to operate, a new website, online application process, and most importantly, up to £2.5 billion to invest in growing UK companies.”

The launch of the Business Growth Fund has received strong support from the Government. 

Business Secretary Dr Vince Cable, in Birmingham to mark the launch of the BGF, said: “The Business Growth Fund is ready to make substantial equity investments into ambitious mid-cap British companies who are set to create the business success stories of the coming years. To see the fund ready to invest so quickly is greatly encouraging and I look forward to the first successful firms receiving funding.

“Alongside new government support for exporters and commitments made by the banks to increase the credit available to businesses of all sizes, this private fund will provide crucial support to the firms generating the employment our economy needs.

“Good investing requires local connections to find and assess opportunities, so for the Fund to have a presence outside London - in both Birmingham and Edinburgh - is particularly heartening. British businesses must have access to the growth capital they need, wherever they are based.”

Backed by five of the UK’s largest banks working in collaboration with the British Bankers’ Association (BBA), the Business Growth Fund is one a series of measures to help small and medium sized UK businesses grow out of recession.  British Bankers’ Association chief executive Angela Knight said:

“UK banks are committed to helping the economy by supporting business. We are committed to helping UK firms access the finance and support they need to prosper and grow and the work of the Business Finance Taskforce - through initiatives like Better Business Finance - will help smaller firms by providing help and advice. The Business Growth Fund is designed to address the needs of growing businesses by providing equity funding and I believe the it will help make a lasting contribution to the finance options available.”

I was born just up the A38 in Derby 64 years ago and started my first business at the age of 25. I have been an angel investor and have shareholdings in more than 20 small companies and I have been a FTSE 100 Chairman since the mid 1980’s. I was also on the Board for Barclays for 13 years and lived through the World banking crisis.

I mention these facts not to boast but to demonstrate that all these experiences have taught me that there has been an equity gap in this country for small and medium-sized businesses for decades. It has been filled from time to time with cheap bank debt but we all know where that has landed many of us. The inescapable conclusion is that there is no substitute for equity in tough times. I am delighted to officially launch the new Business Growth Fund in Birmingham. It is where we chose to base our first office and the main administration centre for our company. We have had a great deal of support from Birmingham Council, Birmingham Chamber of Commerce and Business Birmingham. Indeed many of you are in this room today because we have worked with Business Birmingham to organise this event.

Birmingham, and the Midlands more broadly, has suffered badly from deindustrialisation and disinvestment over the past 30 years. That, I am pleased to say is changing. People are picking themselves up from the devastating factory closures and job cuts of three decades ago. Today the Midlands’ story is one of renewal and regeneration, especially in Birmingham and the West Midlands. That spirit, of picking yourself up, dusting yourself down, and carrying on with optimism is something that we need across the UK as we emerge out of recession.

In 2009, ex-3i executive Chris Rowlands led a review looking at the provision of growth capital to small and medium sized enterprises in the UK. The Rowlands Report, as it is known, identified an equity gap for growing UK companies with a turnover of approximately £10 million to £100 million per annum. This equity gap was originally identified back in the 1930’s, so history really does repeat itself.

The report estimated some 25,000 – 32,000 growing or restructuring UK businesses that might need an injection of growth capital. Of these, 5,000 firms a year were likely to experience significant problems in accessing capital as the economy emerged from recession.

Barely eight months ago, in October 2010, the Business Growth Fund began life as a 37 word sentence published in the Business Finance Taskforce report. The report outlined 17 measures that would be taken by the UK’s largest banks to help the UK economy grow out of recession and help businesses, large and small.

Today those 37 words are a reality. The Business Growth Fund plc is open and ready for business. We have three offices in Edinburgh, Birmingham and London; over 30 staff, FSA authorisation to operate, a new website and online application process, and, most importantly up to £2.5 billion to invest in growing UK companies. We are backed by five of the UK’s largest banking groups: Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered, working in collaboration with the British Bankers’ Association.

While members of all of our shareholder banks sit on the BGF’s main board, the investment decisions we take will be made independently of the banks, Governments or anyone else. The BGF is not a quango, an arm of Government or a subsidiary of any bank. It is a fully-fledged commercial investment institution in its own right. Our investment decisions will be made on our stated investment criteria and following due diligence. Nothing more, nothing less.

Before the last election I spoke to David Cameron on one of his visits to this City and told him quite bluntly that small and medium sized companies needed more equity not more debt. The Secretary of State has been very vocal in exhorting banks to lend more and so they should but in my long experience a solid, permanent capital base is essential for growing companies. You can imagine my surprise and delight to be asked to become Chairman of the new Business Growth Fund.

By the end of the year we expect to have five offices around the country with up to 100 staff. We will be regionally based. Our investment teams will be firmly rooted in their regional and local business communities – accessible, approachable, and actively looking for opportunities to support growing UK companies.

We are recruiting a highly talented and experienced team of investment professionals and people with strong and relevant business experience. Staff joining the Business Growth Fund have recognised that they have a real opportunity to make a difference to our economy; help hundreds of companies; create new jobs; help businesses break into new, emerging markets and sectors; and revitalise UK exports to foreign markets.

Our ambition is nothing less than to create the household business names and listed companies of tomorrow. It will not happen overnight, but I am confident that it will happen.

The theme of our launch today is ‘confidence, collaboration and capital for growth’. The Business Growth Fund offers growing UK businesses all three of those key ingredients for success.

I believe the Business Growth Fund offers a real ray of hope to companies that are emerging out of recession. Companies that have the confidence, ambition and ability to seize new opportunities and new markets in the UK and abroad. Companies that are able to be flexible, understand the changing needs of their customers and offer new products and services fit for the lives we lead today. Successful companies are created by successful people – talented, hardworking, creative, ambitious and dynamic entrepreneurs. Business men and women with a real understanding of what their customers need, offering fantastic products and services. The UK already has the most precious resource of all – talented people. With a highly educated workforce, excellent world-class universities, strong research and development capabilities, and great natural resources we have everything that expanding businesses need to grow and develop.

We, at the BGF, are talent spotters for UK plc. Our mission is to find and support the next generation of highly successful UK companies. We are looking for businesses with evidence of a strong track record and demonstrable growth potential.

We are interested in sectors of the economy that have significant long-term potential for growth. Sectors such as, high-tech manufacturing, software and electronics, leisure and tourism, renewable energy and cleantech, healthcare and life sciences, industrial and business services, outsourcing, and digital businesses. However, we will also support businesses with strong credentials in other sectors – all apart from financial services and real estate. Each company will be judged on its individual merits, not by sector. For us, long-term potential is the key.

So, what is our investment criteria? What are we looking for?

We will invest in established UK companies with sales of approximately £10million up to £100 million per annum.

We will offer investments of around £2 million - £10 million in return for a minority equity stake in the business and a seat on the board.

We will look for returns that are fair and reasonable, not rapacious and onerous.

We will have enough capital and resources at hand to move very quickly for the right opportunities.

Unlike many private equity investors we can and will offer funding over a longer term of five to seven years or more, investing off our own balance sheet.

We will develop strong partnerships with our investee businesses, agreeing shared goals and objectives from the outset.

And we will carry out due diligence in a timely and cost effective manner. But the BGF offers more than just money. Our job is to support talented and ambitious management teams and help business leaders achieve greater success by offering three key ingredients for success: substantial capital, a superb network of contacts and sound, expert counsel.

Securing the BGF as an investment partner should give companies greater confidence to seize their opportunities to invest in research and development, create new products and services, and scale up their operations to target new markets in the UK and abroad.

We will help our investee companies develop their long-term growth plans, and develop the right financing structures for their needs. We believe that having the right balance sheet can help businesses unlock additional bank finance for working capital. BGF investment could be complemented by loans and additional finance offered by banks and other investors to deliver a more rounded capital solution for growth. Other financial backers will also feel more
confident and more willing to back businesses that have already met the BGF’s investment criteria.

Securing investment and partnership from the BGF will also help with customers, suppliers, employees and other stakeholders.

Businesses that succeed in securing our investment and partnership will benefit in another important aspect. The very fact that we have chosen to invest in them will raise their profile and help them market their services to a wider range of clients. Where appropriate, we will be keen to use our own marketing and communications to raise the profile of our investee businesses. They will be part of the BGF family and will benefit from introductions, associations and liaisons with other members of the BGF clan.

At a UK-wide level the Business Growth Fund will work in partnership with Her Majesty’s Treasury, Department for Business Innovation and Skills, Scottish, Welsh and Northern Irish administrations. We will work closely with the British Chambers of Commerce, Confederation of British Industry, Institute of Directors, UK Trade and Industry, and other like-minded partners. We want to forge excellent working relationships with regional and local business chambers of commerce, business schools, Local Enterprise Partnerships and local councils. We will also work with professional networks of accountants, solicitors and consultants who specialise in advising businesses. In addition to our shareholding banks, the BGF will reach out to other investors and investment bodies across the UK, including venture capital trusts and private equity firms.

There are many, many angel investors across the UK. And, like me, they share a passion for helping new businesses grow. Angel investors often have excellent sector-specific knowledge and experience. We are keen to work in partnership with angel investors. Their investment will benefit from the long term security and partnership we can offer; we will benefit from their sectorspecific knowledge and experience. We are therefore keen to establish longterm strategic partnerships with organisations like the British Business Angels Association to look at mutually beneficial opportunities.

Partnership is going to be a key ingredient in the way the Business Growth Fund will operate. We already have a strong partnership with our shareholding banks and the British Banker’s Association. We are closely linked to the banks’ Better Business Finance initiatives designed to provide impartial information and support to businesses of all sizes looking to raise finance. Clearly, given our investment criteria, we will be unable to help all businesses across the UK. We are not aiming to invest in new ventures, inventions, start ups, sole traders or very small enterprises. Neither are we aiming to invest in very large companies with sales in excess of £100 million.

Yet, if we are approached for help we will try and signpost businesses in the right direction, to other sources of help and guidance more relevant to their needs. In particular, we will try and help small businesses. We recognise the difficulties and challenges faced by small businesses trying to succeed in a tough economic climate. We also know that from small acorns mighty oaksgrow. Big multi-national companies have to start somewhere.

Some of the biggest household business names in the UK, started off as tiny one-man or one-woman enterprises many years ago.

We know that one day, those small businesses may approach us again and the next time, they may indeed meet our investment criteria. And we will be happy to help them reach the next stage in their growth.

Indeed, we are keen to build a database of companies to watch for the future. We will, as I said earlier, have our roots firmly planted in regional and local business communities in Scotland, Wales, Northern Ireland and England. We are keen to form strategic long-term partnerships with organisations that can help us identify those businesses early on.

Some business owners and management teams will already be looking for the sort of partnership and equity investment opportunity we offer. They will readily see the benefits of utilising the cash, expertise and contacts we can offer. They will seek us out.

Other business owners and management teams, heads buried in the daily challenges of running their companies, may need some help to look above the parapet and see what they might achieve with a strategic, high-level investment partner working alongside them.

The Business Growth Fund is offering something new that has not existed in the marketplace until now. It may take a while for some companies to work out how they can successfully use the investment and expertise we can offer them. It will require a different way of thinking, a need to review their options and how they might approach new challenges and new horizons for their businesses. Of course, we will be speaking to businesses directly. We are keen to work with all business representative bodies, business relationship managers in our shareholding banks and leading business advisory firms to set up a series of jointly hosted events that allow business owners and CEOs to come and meet our investment directors and managers across the UK.

October 2010. Our shareholding banks and the British Bankers’ Association gave a commitment to get the BGF up and running by April 2011.

I am pleased to report that the BGF did indeed become operational in April 2011, as planned. I am also pleased to announce that we are already looking at 10 companies with a view to potentially making an investment. The sectors covered by these businesses include energy, health, IT, construction and manufacturing.

Of course, we are not going to be able to invest in every company that approaches us asking for investment. We will always base our investment decisions on sound commercial principles, having conducted due diligence. While some companies that approach us may not meet our investment criteria and others may not want to bring a new shareholder into their business, many will see the value of what the BGF offers.

Our work, to search out and invest in the next generation of growing UK companies has begun. Our journey has begun. I hope, when you leave this room you will help us spread the message that the Business Growth Fund is open for business, ready, willing and able to invest in the next generation of thriving UK companies.

Thank you.

Download the pdf version of the Business Growth Fund brochure

John Varley, former CEO of Barclays and Chairman of the Business Finance Taskforce which established the BGF, welcomed the appointments saying:
“I am delighted that Sir Nigel Rudd and Stephen Welton have agreed to lead the Business Growth Fund. Together they will make a formidable team, and will deliver one of the key initiatives which the Banks have put in place to support British business.”

The BGF is backed by all six of the UK’s main banking groups, Barclays, HSBC, Lloyds Banking Group, RBS, Santander and Standard Chartered.

The new Chairman, Sir Nigel Rudd said:
“We want to make a lasting and substantial economic impact by broadening the financial options available to businesses. By investing equity in Britain’s most dynamic businesses and being involved at a board level, we intend to foster a very collaborative approach to financing growth.”

Chief Executive, Stephen Welton added:
“We will help businesses that have often struggled to secure finance because of the ‘equity gap’ for companies looking for long-term growth capital in smaller amounts. We will be looking for sound investments where we can make minority investments, with sensible protections, looking for long term positive relationships with the companies in which we invest. I have worked extensively with entrepreneurs during my career and look forward to helping create an improved environment in the Uk for the growth companies of tomorrow to succeed.”

The BGF will begin assessing business plans and requests for funding from April 2011. It has the capacity to invest £2.5 billion over the coming years. The investments will be in equity or related instruments, taking minority stakes of between £2 million and £10 million each. In addition to an injection of capital, the BGF will also normally take a seat on the board of those companies, offering valuable advice and guidance to help those businesses succeed.

Notes for Editors

1. The Business Finance Taskforce reported in October 2010 in response to the UK Government’s green paper, ‘Financing a private sector recovery’. The taskforce is made up of CEOs and senior representatives from Barclays, HSBC, Lloyds, RBS, Santander, Standard Chartered and the British Bankers’ Association. It is chaired by John Varley.

2. The Business Growth Fund is a key component in a range of measures recommended by the Business Finance Task Force to help growing businesses. It is an independent equity investment company currently backed by six main banks: Barclays, HSBC, Lloyds, RBS, Santander and Standard Chartered. In addition, Barclays, HSBC, Lloyds and RBS have agreed to commit a further £1.0bn as it is needed and other banks will be invited to co-invest.

3. The appointments are subject to formal FSA approval.

4. The Business Growth Fund will become operational in April 2011. In the meantime interested parties can follow BGF developments and announcements via the BGF Twitter feed http://www.twitter.com/BGF_team (@BGF_team)

5. Media enquiries only should be directed to Robin Banerji and Andy Keast-Marriott on 0845 266 8860 or via e-mail at press.enquiries@businessgrowthfund.co.uk

6. On 6 May 2011 Santander announced that it had decided to transfer its financial commitment to the Business Growth Fund into other areas of their business in the UK.