9-Jun-20

Unlocking the potential for UK SMEs

Small and medium-sized enterprises (‘SMEs’) are the lifeblood of the UK economy, accounting for 99% of all businesses and over 60% of all private sector employment. It’s clear that when SMEs prosper, they have a profound impact for society. The benefits are obvious, including a higher tax base, higher rates of employment and the creation of new markets and consumers.

Yet even before the current pandemic, a huge number of profitable, ambitious and well-managed businesses were struggling to raise the investment they needed to finance their growth plans. Triple Point is committed to unlocking this potential and helping business owners navigate their way through the crisis.

Addressing the funding gap

While smaller SMEs have been able to access finance from new lenders such as peer-to-peer and crowdfunding platforms, and while larger businesses requiring loans in excess of £10m have traditionally been well-served by high street banks and specialist debt funds, mid-sized SMEs have traditionally fallen into the missing middle: too big for microfinance initiatives but too small for commercial banks. In 2018 this ‘middle market’ consisted of approximately 35,000 companies, employing a total of 4.2 million people.

Many of these successful and profitable SMEs require sophisticated financing between £500,000 and £5m to fund growth, stock, or changes of ownership such as MBOs. Yet even those that are well-managed and profitable are faced with very limited options and are rarely allocated a bank manager.

“Triple Point can help unlock this potential,” says Neil Richards, Partner and Head of Leasing and Lending at Triple Point.

Triple Point

Founded in London in 2004, Triple Point is an FCA authorised alternative investment manager with over £1.5bn in AUM and 120 employees. With a rich history of supporting SME’s, Triple Point’s leasing and lending business has funded a diverse range of organisations (over 150,000 UK SMEs and rising) to help them achieve their objectives.

For example, over the last 12 months, we funded a £5m Management Buy Out of a technology services provider to the air ambulance charity. Additionally, an £8m loan to the UK's largest tomato grower enabled it to dramatically improve the efficiency of its crop (and to contribute to net zero by reducing its carbon emissions).

“The goal for us is to help a business grow, to enable a management team to take the business to the next level. We are not a speculative growth debt lender. What we do is support good businesses, which have great management teams and a realistic plan for growth,” says Richards.

SME Deal Flow

Over the last year the lending team at Triple Point has met with hundreds of companies spread across the UK in a number of different sectors (as well as introducers who are looking to raise finance for SMEs). The £60m of loans we provided have contributed to generating over £500m in revenue and have helped employ over 3,200 people.

Triple Point continues to proactively look for great businesses that are not being served by the current funding marketplace. We are committed to helping business owners navigate their way through the crisis.

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