Follow-on capital

BGF’s financial support doesn’t stop at initial investments. We can – and do – provide our investee companies with additional funding to unlock further growth.  Much like our initial investments of £2-10m, this ‘follow-on’ capital can be used for store roll-outs, new plant and machinery, funding an acquisition or an export drive, equity release and more.

So, no matter how big a BGF-backed company becomes, we are well positioned to continue to meet its long-term funding needs, all the while maintaining a minority stake.

Below are some examples of investee companies and how they are putting BGF’s follow-on capital to use:


  • Initial funding: £3m in June 2014
  • Follow-on funding: £2m July 2015

BGF first invested £3m in ATM services Group, Cennox, in June 2014 to fund investment in staff, working capital and marketing. Since then, we have introduced the business to our contacts in major banks in the UK, helping the sales team to secure more work.

In July 2015 – just over a year after our initial investment – we provided a further £2m to help Cennox acquire a complementary business in the US, Sterling Bank Services.

The acquisition has nearly doubled the size of Cennox and given it a foothold in a major market which had previously been untapped by the business.

Boost Juice Bars

  • Initial funding: £2.5m in December 2012
  • Follow-on funding: £1.4m December 2014

BGF invested £2.5m in Boost Juice Bars UK in December 2012.

Boost’s CEO Richard O’Sullivan had previously owned and operated Millie’s Cookies, growing it to over 100 stores before successfully exiting.To date, our investment has helped the Boost estate grow from 10 to 22 sites across the UK.

In December 2014 we invested a further £1.4m in the business. This additional funding allowed an early stage investor to exit and provided more growth capital so that Boost could further accelerate its roll-out plan.


  • Initial funding: £3.25m in April 2012
  • Follow-on funding: £3.6m May 2014

Barburrito, the Mexican restaurant company, was BGF’s first investment in North-West England when we injected £3.25m into the business in April 2012.

The business has established itself as the UK’s first national chain of burrito bars, with new openings around the country including three launches in London and two in Leeds and Nottingham and one recently in Cardiff. Barburrito has also invested heavily in operations, branding and its supply chain.

In May 2014, BGF invested a further £3.6m in the business to support its next stage of growth.


  • Initial funding: £5m in August 2013
  • Follow-on funding: £5m May 2014

Before our investment in Xercise4less, the business had steadily built a portfolio of nine large gyms in the North of England. Today, it has close to 40 – and is still growing.

We initially invested £5m in low-cost gym chain in August 2013.  We provided a further £5m in May 2014, which helped to facilitate an increased debt facility of £20m from Lloyds Bank and a further £6m of asset finance from Close Brothers and BLME, bringing the combined total for this round of funding to £31m.

Our funding, as well as the bank debt, has given the business the capital to support management’s plan to build its portfolio over the coming years.