British Business Investments (BBI) has committed £30m to the Panoramic SME III fund as part of a final close of £100m.
The backing will allow Panoramic to fund growth opportunities and management transitions for smaller businesses across the UK.
Panoramic, based in Glasgow, is an established fund manager that invests across the UK but focuses specifically on Scotland, Northern Ireland and the North of England. It provides hybrid, debt and equity financing and is usually the first source of institutional capital for the smaller businesses it funds.
In a statement, Panoramic said it will invest in a range of transactions including management buyouts and replacement capital as well as financing growth for aspiring business owners.
Panoramic said it will invest between £2m and £8m into companies that have achieved EBITDA of more than £500,000 in the prior 12 months and will invest across a range of sectors. It adopts a partner-led approach, with a highly experienced investment team, focused solely on UK SMEs. The new fund will have flexibility in its capital structuring and will invest through a combination of equity and loan notes. This is a continuation of the successful strategy adopted in predecessor funds.
BBI, a wholly-owned commercial subsidiary of the government-owned British Business Bank (BBB), 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, BBI has committed more than £3.3 billion to providers of finance to UK smaller businesses.
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The BBB previously supported Panoramic’s ECF 1 LP through its Enterprise Capital Funds programme in 2010 and Panoramic Growth Fund 2 via British Patient Capital in 2015.
Judith Hartley, CEO, of British Business Investments, said: “At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. Following the British Business Bank’s earlier support to Panoramic, we are pleased to be making this commitment through British Business Investments. Our commitment to Panoramic will help more UK smaller businesses, particularly in Scotland, Northern Ireland and the North of England, to access the capital they need to grow and succeed.’’
Stephen Campbell, Partner, Panoramic, said: “In a tough fundraising environment, our ability to hit our hard cap of £100m is a testament to our consistently strong track record and the business owners we have backed since our first fund launched in 2010. We are very grateful for the support of both our existing and new investors in the new fund, and we look forward to working with them as we now look to deploy capital. 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.”.