BMS Finance launches €30m Irish SME debt fund backed by the Ireland Strategic Investment Fund

BMS Finance launches €30m Irish SME debt fund backed by the Ireland Strategic Investment Fund

23 March 2016

  • Loan sizes will range from €500k up to maximum €5m
  • New fund will target all sectors of the market
  • BMS to open Dublin office to support new fund

BMS Finance, a UK-based SME finance specialist, is pleased to announce the launch of a dedicated €30 million 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. Loan sizes ranging from €0.5 million to €5.0 million will be considered with the focus on loans from €1.0 million to €3.0 million.

BMS focuses on supporting entrepreneur and owner managed businesses but will also look at venture capital or private equity backed businesses. The fund will be sector agnostic but will not be seeking property or property development investments.

BMS has been backing Irish SMEs since inception in 2005 but is delighted to announce the launch of its first dedicated fund to support the financing needs of Irish companies. BMS Finance Ireland will complement BMS' existing UK fund which is backed by the British Business Bank and provides similar finance to UK based SMEs. BMS intends to open an office in Dublin to support the new fund and has identified a number of key hires which will be announced in the near future.

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.

Shane Lanigan, Director of BMS Finance, commented:

“Following on from the expansion in December 2015 of our UK based fund, expansion into the Irish market was the next logical step given our historic experience of investing directly into Irish SMEs. 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.”