BGF (Business Growth Fund)

GCI inverstors

 

 

“GCI has scale, critical mass and significant potential to grow both organically and through further acquisition,
which is in line with both the developments in the market and customers’ own requirements.

 - Tim Whittard, Investment Director at the BGF

 

 


BGF (Business Growth Fund) was established in 2011 and is funded by the UK’s five main banking groups – HSBC, Barclays, Lloyds, RBS and Standard Chartered. BGF is an independent company with £2.5bn of committed capital with which to make equity investments into growing small and medium sized UK businesses. These investments are made in order to encourage businesses to either expand or finance significant acquisitions without having to change control of the business. With that in mind, as part of the investment, BGF offers professional consultancy services so that the investee company has the support to capitalise on its opportunity of expansion.

BGF invests between £2m and £10m per company in profitable UK headquartered businesses typically with turnovers of £5m - £100m across a range of sectors excluding regulated financial services and commercial property and in return for a place on the board and a minority equity stake. This investment is carefully chosen by its experts and realistically broken down to the companies that have a proven track record, a proven business model and a desire to grow. Some clients include the market leading in specialist production of promotional print materials, York Mailing, PTS Consulting Group which provides global IT consultancy and project management, broadband and mobile phone price comparison website Broadbandchoices.co.uk and Better Bathrooms who recently announced they are to create 500 jobs around the UK.

In February 2012, BGF invested £10m to support GCI’s growth plans. As the current Telecoms and IT services markets are forecast to grow 5% to 50%, it will enable GCI to build on its current recognised growth and potentially become one of the market leaders within the telecommunications industry.

At the time of the investment, BGF was encountering problems with its video conferencing communication systems due to insufficient bandwidth frequencies which caused delays, poor image quality and eventually in some cases a complete loss of connection.

After trialling multiple telecommunications systems, BGF selected GCI for a complete end to end communications solution with text messaging, VoIP, mobiles, security and WAN to name some services that have been utilised within their company.

We have been able to repay BGF’s investment with a clear demonstration of what GCI can achieve within the telecommunications industry.