Debt lender raises further £30m following record year

Finance provider Frontier Development Capital (FDC) has raised a further £30 million from two of its existing investors after completing a record year for investment.

The additional funding, which comes from West Midlands Pension Fund and British Business Investments, will increase the size of its FDC Debt LP fund to £105 million and brings its total funds under management to £445 million.

FDC approved more than £141 million investment for SMEs and property developers across the UK in the 12 months to the end of March this year – up 76 per cent on the previous financial year and almost four times the amount it invested four years ago.

Key deals during the year included a £2 million investment to back a management buy-out of Hertfordshire sales enablement consultancy Mentor Group, £1 million growth funding to support the acquisition of three compliance companies by Solihull-based health and safety firm Opus Safety; and a £9 million investment to enable Tamworth Cornerstone Housing Association to almost double the number of properties it owns to help families at risk of homelessness.

Last December FDC became part of Mercia Asset Management plc, one of the UK’s most active SME finance providers.