Foresight says capital is available to help strong SMEs grow during uncertain times

Sponsored feature | Matt McLoughlin, Senior investment manager, Foresight Group

Since the beginning of lockdown, the government has taken unprecedented measures to support UK businesses. The creation of the furlough scheme, provision of Coronavirus Business Interruption Loan Scheme (CBILS) loans, and delays in HMRC payments have given many companies a lifeline. SMEs, however, remain under significant strain, with GDP substantially reduced and many having to cut costs where finance is difficult to access.

With these measures potentially winding down, the pressure in certain companies will likely increase over the coming months, despite areas of the economy beginning to open up. These companies are likely to face a combination of overdue creditors, a return to full salary costs, and the burden of new long-term debt in the form of CBILS. Others, even those less impacted by the crisis, may be reticent to invest in the future. Continued uncertainty and an understandable desire to avoid any further risk may lead to these companies missing out on opportunities and not fulfilling their potential.

The Foresight East of England Fund was set up in recognition of a material gap in SME funding in the region. We are committed to our goal of helping owners and management teams maximise the success of their companies through the provision of patient, long-term capital structured around the needs of the company. The current situation has not changed that commitment, and as such we have continued to invest throughout the period.

Pragmatism is a valuable commodity in turbulent times, and we understand that the immediate needs of companies may have changed. Whether it be refinancing CBILS loans to strengthen the balance sheet, investing for growth without risking the stability of the business, or allowing shareholders to de-risk in a time of uncertainty, we have both the funds and the willingness to help.

Foresight was founded 36 years ago and has witnessed the resilience and entrepreneurial talent in UK businesses through difficult times. Then, as now, we remain committed to helping outstanding companies achieve their potential.

Foresight, which has recently opened an office in Cambridge, is a leading independent infrastructure and private equity investment manager with approximately £5 billion of assets under management. The private equity investment team are amongst the most active investors in SMEs in the UK. The team invests across the life-cycle, from early stage through to established business. Foresight recently launched the £100m Foresight East of England Fund, targeting equity investments of between £1 million and £5 million in SMEs in the East of England and beyond.

For more information, visit foresightgroup.eu.

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