BGF toasts ‘strong’ year of deals activity in the North East and Yorkshire

Private equity firm BGF has hailed £60m of investments into North East and Yorkshire businesses last year.

The ‘growth capital’ specialist said 2023 had been a strong year of activity in which it had injected £115m into small and medium-sized businesses across the North, and £430m across the UK and Ireland altogether. In a summary of its deals for the year, the firm pointed to its £6.3m investment in Newcastle-based tech consultancy Hedgehog Lab and £4.2m of support for Gateshead-based software accessibility innovator Recite Me.

BGF said both deals indicate the strength of the region’s tech firms operating globally. Meanwhile in Yorkshire, bosses pointed to notable deals such as the £8.25m investment into Leeds-based Primary Care Physio, £10m in Wetherby-based Newett Homes and £3.25m into Harrogate’s IDR Law.

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Other Yorkshire-based deals included £12m to Tribepad, the acquisition software firm, and a multimillion-pound sum into Wetherby-based Akula Living which makes outdoor furniture for global hospitality and cruise companies. Exit activity across the two regions was said to have generated a money multiple of 2.5x.

BGF also talked up the performance of businesses it has backed throughout the North East and Yorkshire. It pointed to educational recruitment firm Operam Education Group which made three acquisitions during 2023; bar and restaurant operator Arc Inspirations and its expansion with four new venues in Newcastle, Birmingham, Nottingham and Sheffield, and procurement specialist Bloom having increased turnover.

Barry Jackson, BGF’s head of the North having assumed responsibility for the North West area in addition to the North East and Yorkshire, said: “Our 2023 investments have demonstrated the scale of opportunity to continue backing high-quality businesses in the North of England. We are positive about investment activity in the coming year and will continue to provide minority, long-term and patient capital to a diverse range of high growth and high quality businesses so that they can maximise their potential.”

“I’m looking forward to expanding my remit into the North West, working even more closely with colleagues across our regional teams.”

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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