BMS Finance, a UK-based SME finance specialist, is launching a €30m fund to provide growth capital to SMEs in the Irish market.
The fund, BMS Finance Ireland, will provide debt finance to high-growth Irish SMEs for working capital, contract wins, capital expenditure, acquisitions and MBOs. BMS Finance Ireland is backed by investors including the Ireland Strategic Investment Fund.
BMS Finance Ireland will provide finance on a senior secured basis, without the need for personal guarantees or personal security. The firm said that loan sizes ranging from €0.5m to €5m will be considered, with the focus on loans from €1m to €3m.
BMS will focus on funding entrepreneurs and owner-managed businesses but will also look at venture capital or private equity backed businesses. BMS Finance said that the fund will be sector agnostic but will not be seeking property or property development investments.
The fund is the first one launched by BMS dedicated to Irish companies. The company said that it intends to open an office in Dublin to support the new fund.
In Association with
BMS Finance Ireland will be headed up by Shane Lanigan, who has over 25 years’ credit investment experience and was part of the management buyout (MBO) of BMS in 2012. The management team’s MBO vehicle will be investing directly into the fund alongside GLI Finance Limited and GLI Alternative Finance plc.
According to Lanigan, BMS’s expansion into Ireland is a logical step, given the firm’s previous dealings with Irish SMEs.
He added: “This funding will allow BMS to significantly expand our lending capacity to high-growth Irish SMEs. ISIF’s investment is a vote of confidence in our business model and the opportunities available in lending to Irish-based SMEs.”
Eugene O’Callaghan, director of the Ireland Strategic Investment Fund, said: “Our market research has shown that early stage Irish SMEs and those with limited available collateral often struggle to raise terms loans in the €1m to €3m range.
“This investment demonstrates the Ireland Strategic Investment Fund’s ability to attract an experienced manager and co-investors into the Irish market, to provide a product that addresses this financing gap.”
