1. www.bgf.co.ukKent Corporate Finance Alliance22nd March 2012Introduction to theBusiness Growth FundMarion Bernard, Raf GoovaertsJon Simon, Business Growth Fund

2. Our Origins and Aims 2 3. Unmet Demand 25,000 32,000 UK businesses are growing and have characteristics that makethem suitable for growth capital(Rowlands 2009) But good reasons why a significant amount of this remains unfunded Smaller companies are higher risk Relatively high transaction costs compared with larger deals offering bigger returns Too little knowledge and awareness of equity alternatives among business owners. lack of investment readiness Owners often wary of equity investors .. worried about losing control Historic overreliance on debt3 4. 2.5bn growth capital funding for UK SMEs ExitPrivateEquity Grow Venture CapitalBusiness Angels Addresses the gap between Angel/VCT/VC and Private Equity Friends & FamilyStart-up 50k500k5m50m4 5. Locations The BGF is a national organisation with a regional network of officesto drive local deal origination, execution and on-going supportAberdeen Office Edinburgh OfficeMWB Offices (502)Manchester Office 9-10 St Andrew SqPall Mall Court Edinburgh EH2 2AF61-67 King StreetManchester M2 4PDBirmingham Office45 Church StBirmingham B3 2RTBristol OfficeLondon Office1 Friary, Temple21 Palmer StQuay Bristol BS13 London SW1H 0AD6EA5 6. Experienced investment team with diverse backgroundsLondon & South EastRegional DirectorInvestment Directors Marion Bernard Alistair Brew Raf Goovaerts Chris Hodges Prior to BGF:Prior to BGF: Prior to BGF: Prior to BGF: Northstar, 3i, BarclaysOctopus,CCMP Capital, Carlyle, 3i,Close Bros, PwC JP Morgan PA ConsultingSenior Investment ManagersInvestment Managers Erin Hallock Jonathan SimonRodney Appiah William Gresty Prior to BGF:Prior to BGF: Prior to BGF: Prior to BGF: Barclays VenturesHBOSMerrill Lynch Bank of AmericaRichard PughPrior to BGF:PwCNationwideSouth WestRegional DirectorPaul OldhamPrior to BGF: LDC, 3iChief ExecutiveStephen Welton Prior to BGF: CCMP Capital,North & N. IrelandAndy Gregory Barclays PERegional Director Prior to BGF: Key Capital, ISIS, Bridgepoint, RBDCHead of Investment Richard Bishop ScotlandSimon Munro Prior to BGF: 3i Regional Director Prior to BGF: Lime Rock, JP Morgan, RMD CF6 6 7. Our Investment Strategy 2-10m of growth capital for minority equity stakes Tailored investment structures Well placed to work with the banks and optimise debt financing Board seat always taken to enhance partnership and support No change of control Long term view as we invest from BGF balance sheet 7 8. Who we invest in Privately owned, profitable SMEs Turnover in the range of 5 million - 100 million targeting double-digit growth through a scalable business model margin growth through operational gearing strategic position in a niche market open to acquisitions and buy and build strategies Broad sector focus with appetite for growth Carve outs in financial services and property Strong local approach: close and relevant to the businesses we invest in Ambitious management teams with a strong track record and alignment of interests8 9. Providing more than money Guidance and challenge on strategy for growth over the long term Non-executive involvement at board level not day-to-day operations Provide practical support through a network of business partners Operating partners within the BGF External network of Non Executive Directors Help manage succession and development of the business as it grows Help determine the appropriate capital structure, including unlocking bank financing9 10. The Story So Far Team coming together rapidly Experienced Investment professionals from different backgrounds 5 very successful Non-Executive Directors appointed to main BGF Board 6 offices: Birmingham, Bristol, London, Manchester, Edinburgh, Aberdeen Substantial infrastructure being built to create sustainable long term impact 6 investments completed and continued strong deal flow with further deals inexclusivity10 11. Benefex our first investment 4.2 million of growth capital invested in this Southampton-based software provider Benefex expanding rapidly with 50% turnover year on year - turnover approaching 10m in 2012 A small, but fast growing, knowledge based business It was critical for us to find the right partner. BGF shared our enthusiasm and ambition andoffered more than just money. Its advice, guidance and contacts will be invaluable Benefex CEO Matt Waller With BGFs support, excellent companies such as Benefex are in a position to grow and create jobs Business Secretary Vince Cable11 12. Statesman Travel acquisition finance An independent travel management providing a comprehensive service to blue-chipand private clients A story of growth sales have increased 50% in four years, headcount from 40 to 75 4.25 million of capital invested to fund significant acquisition Statesmans acquisition of Commodore makes it one of top ten UK travelmanagement companies revenues approaching 100m Working with debt providers to unlock additional credit additionalBGF has a compelling offering that will enable us to take our business to the next level Statesman Travel Group Joint MD Mervyn WilliamsonStatesman has a proven and dynamic management team with a clear plan to grow theirbusiness BGF CEO Stephen Welton 13. Unruly Media our first co-investment 4m investment, as part of a 15m round Very fast growing social video distribution company. Delivers high profile social videocampaigns for global brands The funding will strengthen European market leadership position, expand alreadysuccessful US business and establish a footprint in Asia additionalFive years ago we set out to help brands capture the massive opportunity in socialvideo and were delighted that such a distinguished group of investors share ourconviction.Unruly CEO, Scott ButtonBGF is working in partnership with other investors to expand the pool of capitalavailable for growing and ambitious companies as a key part of developing theentrepreneurial economy Marion Bernard, BGF Regional Director (London & South East) 14. GCI Com accelerating growth 10m to support organic growth and active acquisition strategy of midlands basedcommunications and data services provider Founded in 2000. Mix of organic growth and 19 strategic acquisitions. Turnoverapproaching 50m in 2011, and 68% CAGR over the last two years. Strong sector growth from accelerating convergence of IT and telecoms industriesand resulting move towards mobile solutions, cloud computing and unifiedcommunications.In the past we have been relied on bank debt or company cash reserves to finance growth. The thought of private equity backing had not particularly appealed. BGF made us think differently. I havent ceded control of my business, but am in a stronger position, because of their involvement as a partner and long term equity investor, to realise the ambitions that I have for it. Wayne Martin, CEO 15. The BGF is NOTOwned by the government or funded by the taxpayerA QuangoManaged by the banksA lenderA private equity firm focussed on buy-outsA venture capital company focussed on start ups The BGF isAn independent companyManaged autonomouslyFunded from its own balance sheetA provider of long term equity capitalA partner for UK smaller businessesA partner for entrepreneurs and angels15 16. Providing 2.5bn of additional equity finance forfast-growing UK businessesand another champion shouting loudly for Britishentrepreneurship nationwide.16 17. www.bgf.co.ukQuestions?Thank You 17