Investment into small and mid-sized business by growth finance group BGF’s South West office fell last year by around £10m as it came up against what it called “several economic uncertainties”.
BGF, the largest and most experienced investor in the UK and Ireland, completed deals totalling £60m during 2024 against £70m the previous year. 
The 2024 figure includes transactions completed in the Thames Valley and South Wales – where BGF also has offices – as well as the South West.
The BGF Bristol team backed five new businesses across diverse sectors, including technology, healthcare, food & beverage and cyber security.
These included a £9m minority investment into Plant-Ex Ingredients, a Bristol-based manufacturer of natural food ingredients, pictured, and £9m in Kubus, a technology value-added reseller headquartered in Cirencester.
A high point for the Bristol office of the long-term investor, which makes initial investments of between £1m to £20m for a minority equity stake, was the sale of city-based engineering design consultancy Hydrock to sustainable design and engineering giant Stantec, a worldwide firm listed on both the Toronto and New York stock exchanges. 
The takeover, financial details of which were not disclosed, gave BGF a highly successful exit.
BGF’s Bristol office provided £5.6m to support Hydrock’s organic growth as well helping fund its seven acquisitions in recent years.
During the time of BGF’s investment, Hydrock significantly scaled its operations, expanded into new geographies and service lines and focused on larger projects in high-growth sectors.
As a result, Hydrock increased its revenues from £30m to £84m. At the time of the sale, BGF said its investment has delivered a six times multiple return and a 40% IRR (internal rate of return).
In Wales, the BGF team backed Cardiff-based cyber security consultancy business PureCyber. BGF’s £5m investment has allowed the scaling business – one of Wales’s fastest-growing tech firms – to continue its client base expansion within the SME market.
BGF portfolio companies expanding through merger and acquisition last year included Milton Keynes-based BN Care Group, which completed the acquisition of its sixth care home following new investment from BGF, and Exeter-based family-run Troy, Britain’s leading independent maintenance, repair and overhaul product distributor, which celebrated its 20th takeover following a £15.5 million investment from BGF.
BGF also continued to support its portfolio companies on their growth journeys by encouraging the appointment of key senior figures and non-exec talent, providing direct working capital and facilitating acquisitions.
Bristol-based BGF partner Ned Dorbin, pictured, said: “Despite several economic uncertainties throughout 2024, we’ve continued to see a great deal of resilience and innovation from the businesses within our regions.
“We’re proud to play our role in supporting these organisations with funding and strategic counsel throughout a crucial period in their growth journeys.
“Looking ahead to 2025, we’re optimistic there will be opportunities for the region’s ambitious businesses to scale, and we look forward to working with them to help achieve their goals.”
BGF has invested more than £600m in South West businesses since it opened in Bristol in 2011.
