BBI commitments pass £3.8bn
British Business Investments (BBI) has delivered cumulative commitments of more than £3.8bn over the past nine years, with £386m delivered during the past year alone.
During the 12 months ending 31 March 2023, the wholly-owned commercial subsidiary of the British Business Bank made 19 new portfolio commitments to new and existing delivery partners. Nine of these investments were made to new delivery partners. This brings the total number of BBI portfolio investments to 115.
BBI also reported that it has earned a 6.3 per cent five-year adjusted return on its capital investments, delivering a pre-tax profit of £38.1m this year.
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The firm noted that it has supported more than 18,000 smaller businesses across the UK during its most recent financial year. More than 84 per cent of those businesses were based outside of London.
“In challenging economic times, the importance of British Business Investments’ role has been demonstrated once again,” said BBI chair Louis Taylor.
“Against an uncertain backdrop, we have continued to support the UK economy by bolstering the finance options that are available to smaller businesses, making new commitments totalling £386m in the past financial year.
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“We have also generated a strong financial return for the British Business Bank Group, with profit before tax of £38.1m, and a 6.3 per cent five year adjusted return on average capital employed.”
BBI’s remit is to “support the development of more diverse debt and equity finance markets throughout the UK”. In the nine years since it was founded, BBI has worked with a number of alternative lenders including peer-to-peer lenders.
In 2021, Folk2Folk secured a £7m commitment from BBI, and earlier this year property lender CrowdProperty announced a £15m funding line from the investor.
Read more: BBI made “record” £350m in commitments last year