Spring Ventures has provided a £9m initial investment to back a buy-in management buyout of IGF Invoice Finance from the Greater London Enterprise.
The initial investment will be followed by a further £11m of follow-on capital over the next three years.
IGF will lend up to £5m to UK SMEs with revenues of up to £100m. The company is currently headquartered in Kent and employs 38 staff, but aims to expand its presence across the UK after the deal.
As part of the deal, John Onslow, who’s previously grown and sold two asset-based lending firms, has joined IGF as CEO, with Matthew Cooper, co-founder of Capital One Bank becoming chairman.
Onslow said: “In Spring Ventures, we have found an investor that will give us the financial firepower to take IGF into exciting new areas as well as increase our national presence.”
John Hudson, managing partner at Spring Ventures, who will join the IGF board added: “This deal gives us an attractive opportunity to back what we believe is the strongest team in the asset based lending sector. Due to the complexity of the business, few operators have the credibility to provide a full range of asset based loans at this end of the market.”
Established in 1997, the Kent-based IGF provides tailored finance solutions to help businesses manage cash-flow problems and fuel growth.