THE Business Growth Fund (BGF) has made its first investment in Northern Ireland in a multi-million pound boost to a family-owned house builder.
Derry-based Braidwater will use the money to support the development of residential properties across existing sites.
The company has been in business for more than 40 years building two to five-bedroom family homes.
It is run by founder and executive chairman Patrick McGinnis and his son, managing director Joe McGinnis.
Four developments are currently under way at Bedford Meadows, Antrim; Drenagh Park, Limavady; Leighinmohr Crescent, Ballymena and Fort Manor, Dundonald, with two more projects due to commence shortly.
A number of senior appointments have been made following the investment including former chief executive of David Wilson Homes Mike Stansfield joining the board as an independent non-executive chairman.
Paddy Graham, an investor director, and Ciaran McGivern, former head of business banking with Bank of Ireland NI, will also join the board.
Meanwhile, Braidwater’s social housing division will rebrand as BW Limited.
BGF, which was set up in 2011 and has a £2.5 billion pot, is already a minority partner in more than 100 companies.
Joe McGinnis said it was "an exciting new stage of development for Braidwater and we are delighted to have secured the investment".
"The business is growing, and we have seen strong demand from our current developments and have a healthy pipeline of land for acquisition. BGF’s investment and support along with our long standing highly experienced in house, on site and subcontract teams ensures that we have the ability to deliver on new opportunities and meet the increasing demand for high quality family homes," he said.
“As a family business, we like BGF’s approach and its funding model which is focused on longer term, patient capital.
"We’re pleased to be their first investment in Northern Ireland and we would suggest that given the large number of family owned SMEs in Northern Ireland that other companies like ours should look to take advantage of opportunities such as this to create growth in this region.”
BGF's regional director in the north Andy Gregory said: "Many small and mid-sized businesses have ambitions to grow but lack access to funding, or choose to rely exclusively on bank debt.
"BGF offers an alternative to this. We now have a proven model and an established infrastructure. We’re focused on finding strong management teams with deep knowledge of their sector, and we urge ambitious entrepreneurs to get in touch.”
BGF initially invests between £2m and £10m and can provide additional funding to support further growth.
Braidwater was advised in the deal by TLT and PwC Belfast, while BGF was advised by Pinsent Masons and Hill Vellacott.
