British Business Investments, the commercial subsidiary of the British Business Bank, has committed £35 million to Harwood Private Capital UK LP at its first close of £70m.

The fund will focus on deploying £3m to £15m into UK founder, family and management owned businesses, with flexible capital investing across the capital structure. Investment can be used to facilitate organic growth, acquisition, shareholder restructuring, refinancing or act as a bridge to an IPO.