British Business Bank Investments Ltd has committed €40m in the first closing of the Harbert European Growth Capital Fund II (HEGCF II) .
The commercial arm of the British Business Bank was one of several investors during the fund's €140m raise.
The fund will allow Harbert Management Corporation to expand its lending of venture debt finance to fast-growing, tech-focused SMEs.
“We are delighted to welcome the British Business Bank as a partner in HEGCF II,” said David Bateman, senior managing director for Harbert's European Growth Capital.
“We look forward to continuing to finance growth businesses in the UK and across the whole of Europe, as we have done for over 15 years.”
Harbert launched its first European Growth Capital fund in 2013 and targets lending to high-growth businesses in the UK and Europe and expects to raise additional commitments into the fund later this year.
“We are pleased to partner with Harbert and its second European Growth Capital Fund as it makes this important type of funding available to an increasing number of businesses,” said Catherine Lewis La Torre, CEO of British Business Bank Investments.
British Business Bank Investment's investment programme has so far committed over £615m to providers of finance to UK smaller businesses.
Catherine added: “British Business Bank Investments Ltd is committed to ensuring small businesses can access as diverse a range of finance options as possible [to] help them grow and succeed – this €40m investment from our investment programme underlines this commitment.
“For innovative smaller businesses, venture debt finance can be the key to unlocking rapid growth without losing control of their business.”
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