Private equity group BGF has appointed Andy Gregory as its new CEO and announced a £30m shareholder dividend, the first in its history.

Gregory currently serves as BGF's chief investment officer and will step up to CEO from 1 September, while Stephen Welton will become non-executive chair in the new year following a decade as the group's executive chair.

BGF said the announcement was the culmination of a succession process designed by an independent leadership advisory panel working with its board and shareholders over the past three years.

Gregory has worked as chief investment officer since May 2021 and before that served as head of investments for the UK and Ireland from January 2020. He joined BGF as regional director for the north of England in 2011, having held senior roles at LivingBridge and Bridgepoint.

Welton was appointed founding CEO of BGF in 2011, and the group has grown from a start-up to having more than £3bn investment in over 400 companies and a regional network of 16 offices in that time.

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Prior to BGF, Welton was one of the founding partners of the global private equity firm CCMP Capital, formerly JP Morgan Partners, and managing director of Barclays Private Equity and Henderson Ventures, which he also co-founded. He has also served as a member of HM Treasury’s Patient Capital Review, the Council of Innovate UK, and the UK Prime Minister’s business advisory council.

"From a standing start in 2011 and spurred on by the global financial crisis, BGF’s leadership, shareholders, regulators and other stakeholders envisaged a new equity investment platform that would deliver long-term value creation and patient capital, supporting entrepreneurs on a local basis right across the country," Welton said.

"I could not be prouder of what has been achieved and would like to thank our portfolio companies, our team and our shareholders for their enduring support in delivering what is a core mission for BGF and a crucial part of the growth economy.

“After more than a decade of executive leadership, I am delighted to take on the role of non-executive chair and welcome Andy Gregory as incoming CEO," he continued.

"Andy has delivered strong investment performance as CIO, knows the market incredibly well, and will continue to drive forward the BGF model and mission. The additional appointments to the leadership team demonstrate the breadth of talent we have at BGF and the exciting future ahead.

“As non-executive chair, I will remain a champion of fostering the BGF culture and efforts to support a more diverse and inclusive investment environment, with a strong focus on ESG and the scaling of BGF’s charitable foundation.

"More generally, I look forward to building on the work we have done as a catalyst of the growth capital industry, both in the UK and internationally, at what is a critical time for investment into the key sectors of the future.”

Of his appointment Gregory said: "BGF holds a unique position in the investment industry, which it has established thanks to the hard work of a highly skilled team, Stephen’s unwavering leadership and the support of our shareholders.

“I am delighted to be taking on the role of CEO, with Stephen’s support as Non-Executive Chair. We will continue to drive forward our investment activity and deliver exits that create long-term value for the entrepreneurs we back, as well as for our shareholders.

"Against the backdrop of several major macro events impacting the UK & Irish economies, there has never been a more important time to back our entrepreneurial wealth creators. This is something BGF will continue to do over the next decade and beyond.”

Neil Johnson, deputy chairman at BGF, said the board and shareholders were delighted at Gregory's appointment, and Welton's continuing presence at the firm. He also announced a number of appointments to support BGF's new leadership structure.

Richard Taylor has been appointed head of growth, Ben Barker will become head of portfolio and Cate Poulson has been named head of talent network. All three will join Gregory, Claire Lamb and Matt Reed on BGF's executive committee.

Patrick Graham, Neil Inskip and Ned Dorbin, BGF's regional heads in Scotland & Northern Ireland, the north west & the midlands, and the south west & Wales, respectively, will join BGF’s decision-making investment committee.

"I’m delighted to be joining BGF’s Investment Committee, the central engine for the firm’s investment decision making. Stephen has been a fantastic leader of the BGF over the past decade - his move to non-executive chair and Andy’s appointment to CEO will position BGF for continued and future success," Graham said.

"BGF generated strong deal flow in Northern Ireland and Scotland in the first half of 2022, with close to £25m invested. We are looking forward to continuing our investment momentum in the second half of the year.”

Meanwhile, the £30m dividend will be paid out to shareholders HSBC, Barclays, Lloyds Banking Group, NatWest and Standard Chartered.

BGF said it has not drawn on committed shareholder capital since June 2021 and that cash realisations are funding investment activity, allowing excess returns to be returned to shareholders going forward. BGF invested €12.5m in Galway-based Revive Active last month.

Photo: Andy Gregory.