Investment group BGF has reached a significant milestone in its mission to boost regional growth, surpassing £5bn in funding deals since its launch in 2011. The firm was established to provide capital to small and mid-sized businesses, and a host of North East companies have benefited from its backing.
BGF's national impact and regional focus
Since launching, BGF has grown to become the most active growth investor in the UK, backing more than 650 companies across a network of 15 offices. Notably, 74% of its capital has been deployed outside London and the South East, underscoring its commitment to regional economies. The firm has generated £3.7bn in proceeds from more than 280 exits, spanning growth and early-stage businesses. BGF-backed companies have delivered over £8.2bn in revenue growth and created more than 35,000 jobs.
North East success stories
In the North East, BGF has supported businesses including Recite Me, Sale Cycle, and hedgehog lab. Recent investments include a multimillion-pound injection into Origin Tech, a Newcastle-based company operating in the UK water market. After securing an undisclosed sum from BGF, Origin Tech's directors are investing in continued product development to accelerate growth and expand overseas. In Hebburn, ITC Services, an IT managed services provider, received a £7m investment in 2024 to support organic growth and its merger and acquisition strategy. Other notable deals include a £4.6m investment into Gateshead digital accessibility firm Recite Me, and a £6.3m package for tech consultancy hedgehog lab to help it achieve a £50m turnover target.
Recognition and future commitments
Earlier this year, BGF was named the most active investor in the UK’s 245 fastest-growing private equity-backed companies, according to the Real Deals Private Equity Value Report. The firm currently holds a portfolio of 360 investee businesses and manages £3bn in assets. Chris Boyes, investment partner at BGF in Yorkshire and the North East, said: “BGF was established in 2011 to address a gap in the funding market. Since then, we’ve invested £5bn in more than 650 businesses across every region of the UK, reflecting both the scale of the opportunity and BGF’s ability to deliver on that ambition. Our model is deliberately different. We provide long-term capital through minority investments, an approach that resonates with entrepreneurs and management teams in the North East. It allows us to support them as they scale their businesses, while they retain control.” John Healey, BGF investor in Newcastle, added: “Our approach is delivering real economic impact and creating sustained value throughout the portfolio. We continue to see a strong pipeline of opportunities across sectors in the region, spanning new investments, follow-on funding and exits. We remain focused on backing ambitious businesses in the North East as they pursue their growth ambitions.” BGF has committed to invest a further £400m in Yorkshire and the North East over the next five years.
