Member Article

Scale-ups to benefit as IW Capital launches debt investment arm

Private equity firm IW Capital has launched a new service to get debt-based investment into the UK’s scale-up companies.

The new debt investment arm will complement the London-based equity house’s equity investment services, which have so far raised £100m in growth capital for companies such as WeSwap, BorrowMyDoggy and Square Pie.

To support the launch, IW Capital has brought on board a team of experienced credit analysts which will help to source debt investment opportunities in established and profitable UK companies, giving investors the ability to tailor their investment strategies across debt and equity.

The expanded investment opportunities in the UK’s SME community comes after research by the firm found that 52% of adults, from a sample of 2,000, would be interested in supporting UK SMEs through personal investment.

With alternative investment activity reaching £3.2bn in the last year, IW Capital’s Chief Executive Officer, Luke Davis believes the appetite among investors for alternative investment schemes is growing all the time.

He said: “Over the past year, investors are clearly starting to act on their positive sentiment towards British businesses by turning to alternative investment schemes.

“That’s part of the reason why we have seen an explosion in exciting, young and dynamic companies with immense growth potential across the UK.

“Equity investment has always been tailored towards specific companies, and with investor sentiment growing, it seemed natural for us to expand our services into the debt space and offer investors access to new opportunities.”

Davis was keen to point out that the new initiative was not just about providing benefits to investors, but that it was also about getting crucial growth finance to UK businesses as well.

He added: “[T]his isn’t all about investors; it’s about providing as much financial support for our inspiring business community so that they can overcome financial barriers inhibiting their growth. We have some fantastic opportunities lined up, and I look forward to revealing them shortly.”