The European Investment Fund (EIF) has agreed to invest £20m (€23.6m) into WestBridge II, a lower mid-market fund for investments in the UK.
WestBridge II will use the EIF investment to increase its funding for UK SMEs, to provide growth and capital expansion. The involvement of the EIF is expected to attract further investors to the fund.
Westbridge’s team is based in London and Cardiff, and has relationships with local mergers and acquisitions (M&A) boutiques and entrepreneurs across the south of England, the Thames Valley, and Wales.
The EIF has previously backed WestBridge as an investor in its first fund in 2009. The move continues the EIF’s approach as a long-term backer of fund managers across the EU. The fund is expected to back UK-based SMEs and mid-caps, following its predecessor fund, with the aim of encouraging growth. The EIF said: “Due to their demonstrated hands-on approach based on extensive experience, the team is the preferred partner for many founders and executives in these regions.
“The team has proven experience in growing SMEs by implementing a strategy of growth, professionalisation and improved corporate governance.”