Growth Lending & Aros Kapital launch GBP£1bn fund for SMEs

A collaboration between Growth Lending and Aros Kapital intends to provide GBP£1 billion in loans to UK SMEs over the next 5 to 6 years.

Growth Lending, an independent UK-based asset manager, has formed a strategic partnership with Aros Kapital, a provider of capital solutions, to deliver funding to small and medium enterprises (SMEs) in the UK. This partnership seeks to facilitate the distribution of substantial financial resources, targeting a range of deal sizes from GBP£2 million to GBP£10 million.

The timing of this new funding venture is significant as UK SMEs are emerging from a period of uncertainty and redefining their growth trajectories. The primary focus will be on professional services, business services, technology, and healthcare sectors with a keen interest in Software as a Service (SaaS) business models among others.

Having previously launched a GBP£200 million fund during the summer, Growth Lending has successfully channelled GBP£56 million across 11 deals in areas such as telecommunications, software, business services, and healthcare. The new partnership with Aros Kapital is intended to strengthen Growth Lending's positioning within the alternative finance sector, where it has provided over GBP£1 billion in growth and working capital to date.

Kimberly Martin, Managing Director at Growth Lending, expressed enthusiasm about the partnership: "This partnership marks an exciting new chapter for Growth Lending and firmly establishes our ongoing commitment to UK SMEs, empowering them during a pivotal time in their growth journeys."

She added, "We understand that many businesses are exploring growth strategies after what has been a challenging period, and this collaboration with Aros allows us to provide the much-needed capital to fuel their ambitions. Whether that is growth capital, acquisition finance or expansion capital, this enables us to tailor funding solutions to meet their needs."

Martin also highlighted the long-term nature of the collaboration: "Our focus will be on fostering this long-term collaborative partnership with Aros and our clients, ensuring that we not only meet their immediate funding needs but also support their strategic goals for the future."

"We're proud to be able to play a significant role in the increasingly important alternative lending space and are dedicated to helping businesses navigate their growth challenges effectively. Together with Aros, we aim to build upon the experience we gained as BOOST&CO and create a lasting impact on the SME landscape – which is the backbone of our economy," she concluded.

Gustav Röcklinger, CEO at Aros, shared his perspective on the collaboration: "We are excited to embark on this funding partnership with Growth Lending. It aligns well with our goal to consolidate our position as an important part of the funding ecosystem for SMEs in the UK, and the funders that serve them, through the provision of structured back-leverage solutions to best-in-class origination platforms, like Growth Lending."

Röcklinger further emphasised the importance of this collaboration: "This collaboration not only enables us to provide essential capital to businesses at a time when they need it most, but it also reinforces our commitment to fostering innovation and expansion across various sectors."

"We believe that by working together, we can create significant opportunities for SMEs and contribute to the overall economic recovery and growth in the UK. We look forward to seeing the positive impact this partnership will have on the businesses Growth Lending serves," he added.

This strategic partnership between Growth Lending and Aros Kapital represents a vital development for both companies as they collaborate to support the growth of UK SMEs. By leveraging their combined expertise and resources, they aim to not only fulfil immediate funding requirements but also promote sustained growth and innovation within the sector.