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

 

 


The Business Growth Fund (BGF) 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 which is used to make private equity investment to encourage businesses to either expand or finance significant acquisition without having to change control of the business. With that in mind, as part of the investment, the Business Growth Fund offers professional consultancy services so that the invested company is not alone in their opportunity of expansion.

BGF only offer investment to one company per sector, with either a minimum of £3m investment or maximum of £10m going to that company, and in return request 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 Mailings, PTS Consulting Group whom provide global IT consultancy and project management, Broadband price comparison website Broadband choices and Better Bathrooms who recently announced they are to create 500 jobs around the UK.

After a three month consideration process of understanding the business needs and completion of the investment, GCI were proudly chosen as BGFs telecommunications partner with a full investment of £10m being contributed to the planned growth within GCI. 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 one of the market leaders within the telecommunications industry.

As a result of this substantial investment, GCI has become committed to helping BGF in their search for partners and investment opportunities. As BGF have encountered problems with communication through video conferencing, as the bandwidth frequencies weren’t high enough for better quality of video causing delays, poor image quality and eventually in some cases a complete loss of connection. This needed to be addressed as the process of choosing an investment opportunity was being disrupted by something that could be easily resolved.

After having multiple telecommunications systems being supplied, BGF were keen for GCI for their complete system and decided to invest and trust GCI for an end to end solution. This solution being a direct benefit from the investment from BGF into GCI. This has meant BGF could take advantage of the end-to-end solution GCI provide 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 the investment opportunity from BGF with a clear demonstration of what GCI can do within our industry as we have dealt directly with their company giving them a taster of our bespoke services which will ultimately give them confidence as we look expand our business into Channel.