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British Business Bank makes £50m cornerstone commitment to Soho Square Partnership Capital Fund II

Press release 15 July 2026

Today, the British Business Bank has announced a cornerstone commitment of £50m to Soho Square Partnership Capital Fund II to help established small and mid-sized businesses looking to grow further. The Bank is joined by several US institutional investors in the fund.

Headquartered in London, Soho Square Capital is a lower mid-market focused investment firm that provides structured capital solutions to support UK based, founder-owned businesses during periods of transition including adopting new technology, scaling or making an acquisition.

Soho Square will offer businesses an alternative route to funding through a primarily debt instrument, whilst still providing strategic advice and support typically found in private equity teams. It also provides partnership capital to support the growth of portfolio companies.

Fund II will target established companies in the government’s Industrial Strategy’s key growth sectors, with a preference for those in digital and technology, and professional and business services, looking to expand, or undergoing succession events.

Traditional Bank lending is often insufficiently flexible for these purposes and traditional private equity often requires significantly diluting ownership or the sale of the business. Structured capital solutions combine downside protection via senior secured credit instruments with the potential for equity upside through much smaller or minority equity positions.

Soho Square will provide loans to established companies, typically with EBITDA of up to £15m and turnover of up to £200m. At least 75% of the fund will be invested in the UK, with a particular focus on businesses across the UK's Nations and regions. The Fund will seek to address the structural gap in the availability of capital to smaller companies in the UK and will provide business owners with the capital to allow them to scale their companies and stay in the UK.

The British Business Bank makes cornerstone commitments to mobilise further institutional capital by providing a signal of confidence in the fund. The Bank has also committed capital within its Five-year Strategic Plan to prioritise deployment to the eight Industrial Strategy sectors. As a cornerstone investor, the Bank will have the opportunity to participate in co-investments alongside the fund.

Adam Kelly, Managing Director and Co-Head of Funds, British Business Bank said:

This commitment is directly addressing a gap in the debt market. It will unlock flexible capital solutions for established businesses with strong growth potential, an area currently underserved by other lenders. It will create more jobs and drive long-term economic growth across the UK’s nations and regions, while strengthening the modern Industrial Strategy sectors which are critical to the UK’s future competitiveness.

Blair McDougall, Minister for Small Business and Economic Transformation said:

Through our Modern Industrial Strategy, this Government is ensuring businesses with the highest growth potential have the capital they need to succeed here in the UK.

This commitment backs dynamic SMEs in key sectors, helping them scale, create jobs and drive growth, to raise living standards across the UK.

Walid Fakhry, Co-Managing Partner, Soho Square Capital said:

The Bank's backing lets us do more of what we set out to do: give founder-owned businesses the institutional capital they need, on terms that let them stay in control and keep building. That is what our partnership capital is about, and having the Bank behind it means more high-quality UK businesses can take their next step without giving up the reins.

Further Information

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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. In doing so, we help capture the economic value of innovation for the UK and create jobs and prosperity for people across the country.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

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 Soho Square Capital LLP or its products or services.

About Soho Square

Soho Square Capital is a UK-based partnership capital firm that backs founder-owned middle market businesses through significant moments of transformation. Soho Square structures its investments around the specific transition the business is undertaking, rather than imposing a standard product offered by traditional financing options. Owners retain control, continue building rather than exit, and access the institutional capital needed to take the next step, which helps more UK businesses scale and stay in the UK.

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