Manchester’s TDC closes SME Impact Fund at £70m

Manchester-based private credit investor TDC said it has closed its Impact Fund at £70 million “to meet strong demand from northern SMEs.”

TDC said it has secured additional commitments to its Impact Fund “unlocking vital resources for ambitious small businesses in the North of England.”

The Impact Fund was launched in May 2022 after securing cornerstone commitments totaling £40 million from British Business Investments and the Greater Manchester Pension Fund.

The investors have now committed an additional £30 million, bringing the total to £70 million, following strong demand for private credit from small businesses across the North of England.

The increased fund size means TDC is now able to offer loan sizes between £1 million and £7 million.

Founded in 2015, TDC has continued to support businesses in the UK’s mid-market.

“As the only private credit investor outside of London serving the whole of the UK, TDC’s recent capital partnership with KKR has enabled the lender to take capital under management to over £1bn,” said TDC.

“The Impact Fund sits alongside TDC’s three main funds, which make investments of up to £40m.

“Earlier this year, TDC supported employee health and wellbeing solutions provider, Latus Health, with a debt facility through the Impact Fund to support the acquisition of ELAS Occupational Health and The Industrial Diagnostics Company.

“The acquisitions strengthened Latus’ position as a leading occupational health provider within the UK, and will create more job opportunities in its Hull headquarters.”

TDC managing partner Gary Davison said: “We launched the Impact Fund at a time of an unstable economic backdrop with a vision of supporting SMEs across the North that had been disrupted by Covid-19 and the macro-economic conditions experienced following this period.

“Our focus has been on supporting their recovery with a specific remit of growing employment in the region.

As an investment business that was born in Manchester, we’re proud to support these local entrepreneurs in bringing their growth strategies to life.

“We’ve achieved great success to date, and are delighted to secure further commitment from British Business Investments and the Greater Manchester Pension Fund to take our Impact Fund to a £70m cap, enabling us to unlock what the North has to offer the UK as a whole and beyond.

“It’s a unique offering that sits alongside our main funds, and reflects our commitment to making the North an attractive place to work for top-tier talent.”

Adam Kelly, Managing Director, British Business Investments, said: “British Business Investments’ objectives are to ensure smaller businesses can access as diverse a range of finance options as possible and to reduce regional imbalances in access to finance.

“This compliments TDC’s approach as an alternative lender, supporting the development of Northern businesses which might otherwise be unable to access capital to grow.

“We are pleased to make this further commitment to TDC to help growing smaller businesses in the North to access the additional investment capital they need to scale up.”

Cllr Gerald Cooney, chair, Greater Manchester Pension Fund, said: “Our Impact Portfolio seeks to meet out twin aims of investing locally and creating a positive impact whilst generating a positive financial return to meet our pension obligations.

“I am proud that the Greater Manchester Pension Fund is supporting the TDC Impact Fund and its effort to provide finance to SMEs across Greater Manchester and the wider North. 

“TDC is providing support to businesses who have been disrupted over recent years by global shocks with the intention of growing employment opportunities and contributing towards economic growth in the region and beyond.”