Growth investor IW Capital is to launch a £30 million fund backing UK SMEs following the successful completion of a management buyout.
Existing director and established dealmaker Tariq Attia becomes CEO, with experienced entrepreneur and private equity investor Alan Armstrong named chairman.
IW Capital invests patient capital in growing businesses, backing experienced management teams across a range of sectors, with drivers including technology, environmental impact, healthy living, demographic change and education.
The launch of the new Growth fund will enable IW Capital to invest larger cheques in businesses that have proven their model and are ready to scale at pace.
Core to IW Capital’s success is the significant commercial support provided to the portfolio, leveraging both the entrepreneurial experience within the investment team and the significant strength of its investor network.
With eight exits to date, IW Capital has over £150m assets under management across a broad range of UK-based companies including Transcend Packaging, Daily Dose, BorrowMyDoggy, SaveMoneyCutCarbon and Flarin with co-investors including ITV AdVentures, Barclays Sustainable Impact Capital, Starbucks and LG.
Most recently, it has invested in Impact Recycling and GPDQ. Its portfolio investments are across England, Scotland and Wales.
“Since its foundation in 2011, IW Capital has demonstrated a strong track record of backing brilliant businesses with experienced management teams who are addressing long-term shifts in societal trends,” Attia said.
“Our approach means we have continued to see success regardless of the economic environment; in fact, 2023 was our most active year to date. It is hugely exciting to embark on a new chapter for IW Capital, with a talented team bringing the best of youth and experience to support the most exciting growth businesses in the UK today.”
Armstrong added: “I know from my own business experience how important it is to find an investment partner who understands how to support growing businesses through engagement and commercial acumen and network introductions.
“UK SMEs are a core driver of employment and GDP and we pride ourselves on being an active, supportive partner. We combine the agility and entrepreneurship of venture capital with the long-term commitment of private equity to ensure some of the most promising businesses in the UK today have the financial and commercial support they need to realise their potential.
“For our investors, this means access to opportunities which would otherwise be the domain of larger private equity houses.”