The £2.5bn Business Growth Fund, which will invest in small and medium-sized firms, has opened its Bristol office with former 3i regional director Paul Oldham at the helm.
The Fund, financed by the UK’s clearing banks, will inject between £2m and £10m for minority stakes in companies based in the South West and South Wales turning over between £10m and £100m.
Businesses of this size have long complained that they are overlooked by private equity, venture capital and other equity-based lenders who prefer larger, more lucrative investments.
As a result of this equity gap, innovative businesses are often held back.
Mr Oldham, who has also previously worked for Grant Thornton and LDC in Bristol, will have overall responsibility for developing relationships with businesses in the region and for successfully executing fund investments.
He will also sit on the board of some of the fund’s investee companies and is a member of the BGF's national investment committee.
He said: “We are aiming to bring something new to the market and to broaden the financial options available to businesses. We will offer growth finance to business owners who want access to capital but do not want to sell; we will take minority stakes; and we are not under pressure to exit within a certain time frame.”
During his career, which included 13 years at 3i, Mr Oldham has overseen more than 40 equity investments in small and medium sized businesses.
The Bristol office is the fourth opened by the Fund since its launch in May.
