Today, the British Business Bank committed £15 million to private credit firm Prefequity.
The bank is investing alongside Prefequity Credit Opportunities II LP, to which the British Business Bank has already committed £30 million.
Prefequity is a UK-based private credit firm serving the undersupplied gap in the UK lower mid-market. It offers owner-managers flexible debt-based capital solutions as an alternative to private equity to support their strategic growth and development plans.
Specifically, the UK-based private credit firm will target non-sponsored companies – those without backing from a private equity firm – that are seeking capital for growth initiatives such as acquisitions, management buy-outs and capital investment programmes.
Prefequity applies a partnership approach to the companies it invests in, taking a seat on the board and providing hands-on support to enable them to fulfil their potential.
Its first fund successfully deployed £100 million and has achieved four exits to date. Prefequity Credit Opportunities II LP is targeting a £150 million final close.
Adam Kelly, Managing Director and Co-Head of Funds, British Business Bank, said:
“Following the success of its previous fund, we are pleased to continue our support for Prefequity.
This new co-investment vehicle will unlock growth for businesses in the UK’s Nations and regions, providing them with the flexible debt solutions they need to succeed and reach their full potential.”
Theo Dickens, Prefequity's Managing Partner, said:
"We are delighted our second fund is off to a strong start and immensely grateful to the British Business Bank and our other investors for backing Fund II and the SMA.
We look forward to attracting more LPs in further closings with our investment philosophy that combines downside protection from senior secured loans with the opportunity to partner with high-quality management teams through our equity participation.”
Lead image: Freepik.
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