Frontier Development Capital

FDC launches £100m debt fund for UK property developers



Alternative fund manager Frontier Development Capital (FDC) has announced a new national £100m SME debt fund open to property developers and trading businesses.

The FDC Debt Fund (FDC Debt LP) — which supports SMEs that need flexibility in their funding structure during these uncertain times — achieved a first close of £75m, and will be announcing its first deals within the coming weeks.
 
It can provide loans of up to £7.5m to trading businesses and property developers throughout the UK.

The fund has been made possible due to commitments from West Midlands Pension Fund (WMPF) and British Business Investments. 

“We are grateful to both existing and new investors for their support,” said Sue Summers, CEO at FDC (pictured above).

“Raising a fund such as this in these difficult times is testament to our incredible team and a business model that supports regional SMEs — the engine room of the UK economy.”

FDC, which is headquartered in Birmingham, is a regional fund manager that has been lending directly to SMEs nationwide since 2016. 

“For almost four years, we have worked closely with investee businesses spanning a broad spectrum of industries and business strategies,” added Sue. 

“The creation of the FDC Debt Fund is the next step for FDC as a supportive, intuitive fund manager that understands real businesses. 

“That’s why we already have deals in the pipeline that are completing imminently, despite the uncertainties in the UK economy.”

Jill Davys, assistant director of investments at WMPF, commented that it was delighted to be supporting FDC in providing funding to regional SMEs at this critical time for the economy.

“This latest investment with FDC follows on from previous investments made by the fund which have helped not only deliver the financial returns the fund needs to pay pensions, but also supported growth in the local regional economy.”
 
Judith Hartley, CEO at British Business Investments, stated that it aims to increase the supply and choice of finance to smaller businesses across the UK, and it achieves this by supporting regional fund managers, like FDC, on their growth journey. 

“This allows FDC to raise more substantial funds and support more SMEs, particularly those based in the regions.”


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