For many UK businesses, self-funding or reinvesting the profits they generate can only take them so far before growth opportunities outpace available resources. According to data from the ScaleUp Institute, more than half of high-growth businesses in the UK struggle to access the capital needed to reach their full potential.

This funding gap can mean slower expansion, missed market opportunities and limited investment in technology, talent or infrastructure. That’s where growth capital comes in. This is a form of funding – usually equity – that provides companies with the financial firepower to scale, while retaining strategic control.

Unlike traditional private equity, which often involves majority ownership, growth capital investors take a minority stake in the businesses they’re backing, offering expert guidance as a supportive junior partner. Growth capital is particularly valuable for businesses that have strong revenue streams and market traction but need additional resources to accelerate their journeys.

As the UK and Ireland’s most active growth capital investor, BGF has invested £4.5bn in more than 600 businesses to date. With a presence in 15 regional offices, BGF provides ambitious small and medium-sized businesses with flexible funding, strategic support and access to an extensive partner network.

BGF’s investments typically range from £3m to £30m, offering follow-on funding as businesses continue to grow. With a clear focus on value creation, BGF also connects entrepreneurs in its portfolio with non-executive board members, sector specialists and business advisors who can help drive sustainable, long-term success.

As Paul Baker, co-founder of the international bakery business St Pierre Groupe, explains: “BGF’s investment enabled us to accelerate our international expansion and scale at a pace that wouldn’t have been possible otherwise. Its strategic support and long-term approach were invaluable in taking our brand to the next level.”

Dr Brian McConnell, founder of Hydrock, a design and sustainability consultancy, turned to growth capital with a clear objective: M&A. Securing investment from BGF in 2018, Hydrock acquired seven complementary businesses within six years, strengthening its market position. This strategic expansion led to the company’s acquisition by Stantec, a leading sustainable engineering and design company, in 2023.

McConnell says: “BGF has been an excellent partner and its investment in the business has played a critical role in our growth story.” BGF has supported many successful exits, helping companies transition to new ownership or be acquired by larger companies operating in their industry.

One example is kitchen manufacturer Uform. It leveraged investment from BGF, as well as the support on offer, to scale its operations, enhance its manufacturing capabilities and expand into new markets. This strategic growth positioned the company as one of the top businesses in its sector, ultimately leading to a high-value exit that delivered strong returns and a bright future for the business.

“We have built a very strong relationship with the BGF team, who from day one bought into our vision and strategy of where we want to take the business and provided invaluable support,” says Eamon Donnelly, co-founder of Uform.

Another success story is J&B Recycling, which secured growth capital from BGF to modernise its recycling facilities, invest in new technology and expand its operations. This partnership enabled the company to increase efficiency, meet growing demand and strengthen its position in the waste management sector.

“BGF’s support offered us the perfect combination of patient long-term capital, insight and support,” says Vikki Jackson-Smith, chief executive at J&B Recycling.

Growth capital is more than just financial investment – it’s about unlocking a business’s full potential. Whether through acquisitions, product launches, international expansion or workforce development, businesses that secure growth capital are better positioned to scale efficiently and sustainably.

BGF is committed to supporting ambitious entrepreneurs and companies across the UK and Ireland. If your business is ready to take the next step, explore how growth capital from our team could help you scale by visiting bgf.co.uk.