13th June 2016 – Beechbrook Capital, the specialist direct lender, has completed the third investment in its UK SME Credit Fund, providing a combination of debt and equity to 4Most Group Holdings Limited (‘4Most’), a company providing regulatory and credit risk analytics consultancy to banks, credit card providers and other businesses with consumer credit exposure.
The regulatory environment for the financial services and banking sector demands ever more analysis around the potential for losses in changing economic conditions. In particular, IFSR9, which explicitly requires banks to analyse future loss expectations, Basel II and III, and the stress testing process conducted by the central banks have combined to massively increase the demand for the high-quality credit risk modelling and consultancy services that 4Most provides.
The company was founded in 2011, is growing strongly in the UK and is now starting to develop a presence overseas.
Beechbrook has invested in both debt and equity to enable a shareholder realignment and help support the organic growth of the business. Beechbrook has become a minority shareholder in the company and will appoint a director to the board.
Jon Herbert, managing director of the UK SME Credit Fund, commented: ‘We have been very impressed with how the two co-founders have developed the business over the last few years and are excited about supporting the business as it broadens its customer base and service offering both in the UK and overseas.
Mark Sisson, chief executive of 4Most, added: ‘In Beechbrook we have found an innovative institutional investor who has adopted a debt-led approach to investing in our high-growth SME business whereas other investors were more focused on ownership. We look forward to working with the Beechbrook team as we take 4Most to the next level.’
