New £1bn strategic partnership to drive UK SME growth

Growth Lending, a leading UK-based independent asset manager specialising in funding fast-growth small and medium enterprises (SMEs), has announced a significant funding partnership with Aros Kapital, a leading provider of tailored capital solutions to funding platforms. This partnership is expected to deploy £1bn worth of loans over its initial 5 to 6 year duration, providing a substantial boost to the UK’s SME sector.

This new source of capital comes at a crucial time for UK SMEs. After a period of uncertainty, businesses are actively seeking growth opportunities and the funding necessary to support their ambitions. The collaboration between Growth Lending and Aros aims to meet this demand with a new fund focusing on deals ranging from £2m to £10m. The new fund will support various growth initiatives, including mergers and acquisitions, expansion and research and development.

The partnership will primarily target Growth Lending’s core markets, which include professional services, business services, technology and healthcare. There is also a significant interest in business models such as Software as a Service (SaaS). However, the appetite for funding is broad, encompassing any business with growth ambitions and a solid business model.

Having closed the initial £200m fund in the summer, Growth Lending has already deployed £56m across 11 deals in sectors such as telecommunications, software, business services and healthcare. This latest funding partnership reinforces Growth Lending’s strong track record in the alternative finance space, where it has already lent more than £1bn in growth and working capital to date.

Kimberly Martin, managing director at Growth Lending, said: “This partnership marks an exciting new chapter for Growth Lending and firmly establishes our ongoing commitment to UK SMEs, empowering them during a pivotal time in their growth journeys.

“We understand that many businesses are exploring growth strategies after what has been a challenging period, and this collaboration with Aros allows us to provide the much-needed capital to fuel their ambitions. Whether that is growth capital, acquisition finance or expansion capital, this enables us to tailor funding solutions to meet their needs.

“Our focus will be on fostering this long-term collaborative partnership with Aros and our clients, ensuring that we not only meet their immediate funding needs but also support their strategic goals for the future.

“We’re proud to be able to play a significant role in the increasingly important alternative lending space and are dedicated to helping businesses navigate their growth challenges effectively. Together with Aros, we aim to build upon the experience we gained as BOOST&CO and create a lasting impact on the SME landscape – which is the backbone of our economy.”

Gustav Röcklinger, CEO at Aros, added: “We are excited to embark on this funding partnership with Growth Lending. It aligns well with our goal to consolidate our position as an important part of the funding ecosystem for SMEs in the UK, and the funders that serve them, through the provision of structured back-leverage solutions to best-in-class origination platforms, like Growth Lending.

“This collaboration not only enables us to provide essential capital to businesses at a time when they need it most, but it also reinforces our commitment to fostering innovation and expansion across various sectors.

“We believe that by working together, we can create significant opportunities for SMEs and contribute to the overall economic recovery and growth in the UK. We look forward to seeing the positive impact this partnership will have on the businesses Growth Lending serves.”

This latest partnership marks a pivotal moment for both Growth Lending and Aros as they join forces to empower UK SMEs. By combining their expertise and resources, they aim to create a robust support system that not only addresses the immediate funding needs of businesses but also fosters long-term growth and innovation. Together, they are committed to driving economic progress and ensuring that SMEs have the financial backing necessary to thrive in today’s competitive global market.