British Business Investments has announced a £50m commitment with DunPort Capital Management to create a co-investment vehicle, Alder Corporate Credit DAC.

The investment vehicle will provide smaller businesses with a turnover of less than £100m with flexible debt capital solutions.

British Business Investments, a wholly owned commercial subsidiary of the British Business Bank, aims to improve access to alternative finance for smaller businesses across the UK. Since it was established in 2014, it has committed more than £3.8bn to providers of finance to smaller businesses.

The Alder vehicle will co-invest alongside Oak Corporate Credit DAC, launched in 2021 and backed by the Ireland Strategic Investment Fund, the European Investment Fund and a number of other institutional investors to support smaller firms.

Managing director of British Business Investments, Adam Kelly, said: “Our mission is to improve access to alternative finance for smaller businesses across the whole of the UK. This £50m commitment to DunPort will support UK businesses with the flexible debt solutions they require to develop their growth strategies. We are delighted to partner with DunPort.”

DunPort executive director, Pat Walsh, added: “The UK is a strategic market for DunPort and one in which we are continuing to experience strong and sustained demand from a wide range of sponsors, advisors, and business owners generally for flexible debt solutions The launch of Alder now increases our capacity to support small and medium sized companies across the UK.

“Furthermore, the addition of British Business Investments to our investor base is an important validation for DunPort as we continue to enhance our position as a leading alternative debt capital provider in the UK and our other core markets of Ireland and the Benelux region.”

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