BGF is preparing for its first external capital raise, seeking up to £500 million from institutional investors to broaden its funding beyond its founding banks—Barclays, HSBC, Lloyds, and NatWest. The move marks a strategic shift as the firm aims to diversify its investor base and strengthen its capacity to finance small and medium-sized enterprises across the UK and Ireland.
The planned raise, expected in 2026, follows BGF’s commitment to invest more than £3 billion over the next five years. Investment bank Lazard has been appointed to advise on the process. The new funds would allow BGF to channel additional capital into growing companies, aligning with government efforts to attract long-term institutional investment through initiatives such as the Mansion House Accord.
Since its formation in 2011, BGF has invested over £4.7 billion in more than 600 businesses, creating around 27,000 jobs and contributing £7.1 billion in revenue growth. The firm reports a 21.4% internal rate of return since 2016, highlighting its performance in backing growth-stage companies through minority stakes.
BGF’s next phase signals an evolution in the UK’s growth capital landscape, as the firm adapts to increasing competition from private equity, family offices, and debt funds while maintaining its regional focus outside London and the South East. Recent exits include Brisant Secure, Fulfilmentcrowd, and Braidwater.
