BRITISH Business Investments has announced that it has committed £30m to the Panoramic SME III fund as part of a final close of £100m.
Panoramic is an established fund manager that invests across the UK – focusing specifically on Scotland, Northern Ireland and the North of England – and is usually the first source of institutional capital for the smaller businesses it funds.
Panoramic is known for its innovative approach, such as investing in a range of transactions including management buyouts and replacement capital as well as financing growth for aspiring business owners.
The new fund will have flexibility in its capital structuring and will invest through a combination of equity and loan notes, allowing Panoramic to fund growth opportunities and management transitions for smaller businesses across the UK.
Panoramic will invest between £2m and £8m into companies that have achieved EBITDA (business performance) of more than £500,000 in the prior 12 months and will invest across a range of sectors.
British Business Investments – a wholly-owned commercial subsidiary of the British Business Bank – aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of a range of finance providers.
Since it was established in 2014, British Business Investments has committed more than £3.3 billion to providers of finance to UK smaller businesses.
Stephen Campbell, Investment Partner, Panoramic, said: “Our ability to hit our hard cap of £100m is testament to our consistently strong track record and the business owners we have backed since our first fund launched in 2010.
“British Business Bank has been an investor in Panoramic funds since our inception and we are delighted that they have continued that journey with a £30m commitment to Fund 3.”
