BGF’s South West team invests £67 million in 2020 and pledges to continue to back even more businesses
The South West team at BGF, the UK and Ireland’s most active investor in growing businesses, has invested a total of £67m into companies in 2020, despite the challenges of the pandemic.
New investments in the last 12 months included £6 million in Bristol-based Amdaris, one of the UK’s fastest growing technology companies which employs more than 200 developers and has averaged 40 percent revenue growth per annum over the past three years, to support its organic and acquisitive growth strategy.
More recently, BGF announced an investment in Bristol-headquartered cloud-based HR and payroll software provider, XCD. The tech innovator has a growing workforce of more than 70 employees delivering world-leading HR and Payroll solutions for clients spanning the not-for-profit, private and public sectors.
The new investments take BGF’s total funding in the South West region to more than £377 million.
In recognition of the successes of the past year, BGF scooped ‘Private Equity House of the Year’ at Insider’s South West Dealmakers Awards 2020, with BGF investor James Skade winning ‘Emerging Dealmaker of the Year’.
The South West team also grew, with new appointments Liam Pursall and Georgie Stratton joining BGF in investment and direct origination roles to reflect ongoing market demand.
In 2020, BGF’s South West team announced the highly successful exits of Vysiion Group, an IT services company, and Direct Online Services, the UK’s leading e-commerce retailer of kitchen worktops. Both exits delivered excellent returns for all shareholders.
Ned Dorbin, Head of South West and Wales at BGF, commented: “Covid-19 has placed a significant strain on many of the region’s businesses; however, we have remained determined to support those entrepreneurs and management teams showing great resilience in the face of economic uncertainty. Throughout 2020, BGF has continued its long-term approach, with the aim to assist the expansion of businesses at the appropriate pace and pursue an exit that is timed right to be of maximum benefit to all shareholders.”
Ned and his team have seen an uplift in enquiries heading into 2021, signalling further prospects for deal activity over the next 12 months. Opportunities are likely to arise from entrepreneurs looking to make acquisitions, enter new markets and potentially de-risk of some of their own personal investments.
This view is supported by research carried out by Delineate on behalf of BGF which found that 69% of growth economy companies in the South West – which have revenues between £2.5m and £100m – said they remain motivated to grow in 2021.
Ned continues: “We are seeing a real drive and motivation amongst growth economy businesses to get themselves in order, with many considering equity funding as a stabilising solution. BGF’s proposition as a long-term, minority equity partner is attractive to businesses looking to recapitalise, particularly if they have built up significant amounts of debt during the pandemic. Equity funding can allow the repayment of personal financing and accelerate growth plans, such as strategic acquisitions. BGF has the expertise and financial backing to give businesses critical advice as they look to reignite or forge ahead with growth plans this year.”
