BGF supports 24 UK firms to the tune of £177m in the year to June
INVESTOR BGF has revealed it backed 24 new companies in the first half of the year while continuing to actively support its portfolio.
Total investment from January to June from BGF stands at £177m and includes £128m into new portfolio companies and £49m into existing portfolio companies.
BGF has made it a priority to support the economy in uncertain times, backing one new company a week, including Emma Bridgewater in Stoke-on-Trent, Bayfield Opticians in Leeds and the AIM-listed City Pub Group in London.
Stephen Welton, executive chairman at BGF, said: “Covid-19 is already having a dramatic impact on the economy with growing unemployment and real concern about rising insolvencies as furlough ends and recessionary conditions hold sway.
“BGF as a business has maintained full employment and successfully operated remotely. That, sadly, will not be the case for much of the economy which is why ongoing investment activity is so crucial.”
BGF delivered eight successful exits in H1 with an average money multiple of 2.1x and an aggregate IRR of 41 per cent, reflecting the underlying dynamism of the growth economy.
The average investment-hold period for H1 exits was 3.5 years and ranged from nine months to over six years, facilitated by BGF’s flexible investment model.
These exits – which returned £135m from the £66m invested – included four technology services and software companies, Miss Group, Vysiion, Solid Solutions and AIM-listed Castleton, and ecommerce retailer DOS.
BGF has fully written down investment in three companies during this period.
Technology and digital companies made up a significant portion of investments in the first six months and included Amdaris in Bristol, AND Digital in Aberdeen, Edgescan in Dublin and Juriba in London.
Maintaining a strong regional focus remains paramount to BGF as shown by recent activity and the spread of the portfolio overall.
New offices were opened in Cambridge and Cork in the first half of the year.