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British Business Bank commits £40m to Harwood's second SME fund

The commitment supports a £120m first close across the fund's debt facility and co-investment vehicles.

£40mBritish Business Bank commitment to Harwood's second fund

At a glance

  1. The commitment is to Harwood Private Capital UK Fund II, which spans the fund's debt facility and co-investment vehicles, Alternative Credit Investor reported.
  2. For allocators screening the fund, the first fund's portfolio is the starting point for due diligence: digital technology, clean energy supply chains, manufacturing and tourism, including Welsh marina operator Western Marinas.
  3. The commitment takes the bank's total support for Harwood to £75m, after £35m into HPC UK SME Fund in 2020.

The British Business Bank has committed £40m to Harwood Private Capital's second SME fund, supporting a first close of a vehicle the manager says totals £120m.

The commitment is to Harwood Private Capital UK Fund II, which spans the fund's debt facility and co-investment vehicles, Alternative Credit Investor reported. The fund lends to smaller and lower mid-market private companies for expansion, acquisitions and shareholder transitions, with a particular focus on businesses that have not been backed by private equity.

For allocators screening the fund, the first fund's portfolio is the starting point for due diligence: digital technology, clean energy supply chains, manufacturing and tourism, including Welsh marina operator Western Marinas.

The commitment takes the bank's total support for Harwood to £75m, after £35m into HPC UK SME Fund in 2020. The bank has also been active in UK SME credit, most recently guaranteeing part of NatWest's £200m facility to card lender Capital on Tap, as Private Wealth Daily previously reported.

Reported by the Direct Lending desk from Alternative Credit Investor. Published . Corrections

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