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British Business Bank commits additional £40m to Harwood Private Capital to support ambitious smaller businesses across the UK

Press release 12 November 2026

The British Business Bank has committed an additional £40m to Harwood Private Capital to increase the supply of flexible growth capital to smaller businesses across the UK, offering an alternative to traditional lenders and M&A transactions.

The investment supports the first close of Harwood Private Capital UK Fund II, bringing total commitments across the fund and its committed co-investment vehicles to approximately £120m. The fund and its co-investment vehicles will back smaller and lower mid-market private companies, helping them pursue expansion, acquisitions and shareholder transitions.

The commitment supports the British Business Bank's objective of improving access to finance for smaller businesses throughout the UK, particularly where there are gaps in the market for growth and scale-up capital. This latest investment takes the Bank's total commitment to Harwood to £75m, building on its £35m commitment to Harwood's inaugural fund, HPC UK SME Fund, in 2020.

Harwood Private Capital is a private credit investment manager specialising in flexible debt solutions for UK lower mid-market businesses. Its inaugural fund has supported businesses operating across a range of sectors, including digital technology, clean energy supply chains, manufacturing and tourism.

One example of Harwood's approach is Western Marinas, a Wales-based marina operator backed by its HPC UK SME Fund. Harwood funded the restoration of marina facilities in Wales and South West England, bringing new life to important community assets. The investment has helped secure local jobs and support family businesses in the region, while attracting visitors and boosting economic activity across surrounding coastal communities.

Adam Kelly, Managing Director, Debt & Regional Funds, British Business Bank, said:

Many smaller businesses continue to face challenges accessing the flexible growth capital they need to scale, invest and realise their ambitions. Harwood has developed a strong track record of providing tailored financing solutions to UK SMEs, particularly those that have not been backed by private equity. Our commitment will help increase the availability of growth capital for businesses, support economic growth and create jobs throughout the UK.

Haseeb Aziz, Managing Partner, Harwood Private Capital, said:

The British Business Bank has backed Harwood Private Capital since our first fund, and this renewed commitment reflects the strength of that partnership. Founder and family-owned businesses are the backbone of the UK economy, yet many are still underserved by traditional lenders whilst wishing to maintain ownership control. The £120m of committed capital allows us to keep providing the flexible, partnership capital these businesses need to grow, make acquisitions and manage ownership transitions on their own terms.

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

In 2025/26 1  , the Bank supported UK smaller businesses to access £9.4bn of finance, made up of £1.3bn of public funding, £4.3bn of private capital crowded in by the Bank and £3.7bn of lending the Bank guaranteed. The funding benefited 38,000 UK businesses, including around 30,000 businesses the Bank had not previously helped to fund.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of Harwood Private Capital or its products or services.

About Harwood Private Capital

Harwood Private Capital is the private credit arm of the Harwood Capital Management group. Harwood Private Capital provides flexible debt solutions to lower mid-market businesses across the UK, backing founder, family and management-owned companies. It supports businesses with EBITDA of £2-10m with financing for growth, acquisitions, management buyouts and shareholder transitions.

Harwood Capital Management group is a leading investor in UK companies, managing over £1.4bn(1) across public equities, private equity and private debt and has invested in over 300 companies. Harwood Private Capital benefits from the wider group’s investment experience and its network of operating partners drawn from current and former portfolio companies.

Harwood Private Capital LLP is authorised and regulated by the Financial Conduct Authority (FRN 815275). For more information, visit harwoodpc.com.

Media enquiries: James Western, Harwood Private Capital, [email protected]

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