FPE, a specialist private equity investor that focuses on B2B software companies, has secured a £40m commitment to its Fund IV from a UK state-owned investor.
The British Business Bank, which previously committed £20m to FPE’s Fund II back in 2017, announced its latest show of support on Thursday.
The bank said its cornerstone commitment to the fund would support high-growth small businesses across the UK.
It forms the latest step in the bank’s recently established growth equity strategy, an expanded mandate from the government to enable it to invest in lower-mid-market private equity funds that target small businesses in sectors that are in line with the current Industrial Strategy.
“There is a significant funding gap in the lower-mid-market, particularly for those smaller businesses that have outgrown early-stage funding,” said Adam Kelly, managing director and co-head of funds at the British Business Bank.
“FPE is helping to address this by providing a flexible solution for businesses at a critical stage of their growth journey. By backing firms like FPE through our expanded mandate, the Bank is increasing the supply of capital available to UK businesses ready to move into their next phase of growth.”
Founded in 2016, FPE invests in companies across the UK and Ireland. It generally targets firms with enterprise values of £10m-£75m.
“The Bank’s commitment will ensure that growth capital is channelled to high potential companies entering the next stage of their growth journey,” said Richard Coldwell, investment director of funds at British Business Bank.
“By focusing on the Digital and Technology, and Professional and Business Services sectors of the Industrial Strategy, FPE will contribute to creating high-value jobs and driving economic growth across UK.”
