The FSE Group has secured an additional £15.5 million commitment from the British Business Bank into the South West Investment Fund, taking the total value of the equity and debt funds managed by FSE in the South West to more than £120m. This strengthened commitment will enable FSE to continue to invest in ambitious, high‑potential businesses across the South West.
Since launching operations in the South West in 2018, FSE has invested almost £65m into 130 SMEs across the region. This includes more than £30m into 68 businesses through the South West Investment Fund, comprising around £20m in equity and £10m in debt finance. In addition to the capital provided directly through FSE-managed funds, the fund’s investments have enabled companies to raise a further c£140m to accelerate growth across the regional economy.
The British Business Bank's latest investment enables FSE to expand its impact by backing founders and management teams who are developing innovative products, creating quality jobs, and generating economic value throughout the South West, including identifying opportunities in areas outside of urban centres, that others may overlook.
Julie Silvester, CEO of The FSE Group, said: “Securing this additional £15.5m million for the South West Investment Fund enables us to invest more in scaling up ambitious businesses. For more than 20 years, our teams have been embedded in regional ecosystems, supporting founders long before and long after investment. This hands‑on, relationship‑driven approach consistently improves the probability of success for businesses that mainstream finance often misses. With this new allocation, we look forward to helping more South West companies turn their potential into growth, high‑quality jobs and long‑term economic value for the region.”
Lizzy Upton, Senior Investment Manager for the British Business Bank, said: “Regional fund managers like FSE play a vital role in ensuring smaller businesses can access the finance and support they need to grow. Their knowledge of local markets, networks and opportunities helps the fund to reach ambitious SMEs across the region that may otherwise struggle to secure investment. This additional £15.5 million commitment will strengthen the South West Investment Fund’s ability to support innovative businesses across the region, helping them to scale, create jobs and contribute to long term economic growth.”
Among the businesses supported by the South West Investment Fund so far is Evolution AM Holdings, parent company of Evo3D and Rapid Fusion. The business secured a £400,000 growth loan to accelerate the commercialisation of Medusa, its latest large‑format 3D printing innovation. The funding is supporting R&D, marketing and job creation as the company builds on strong momentum in a rapidly expanding global sector.
Another recent investment includes Luthmore, the UK company behind a zero‑emission electric combi boiler. Luthmore received a £1million South West Investment Fund equity investment as part of its most recent £5.5million oversubscribed raise, helping the team scale production, expand operations and move into commercial rollout as demand grows for practical, clean‑heat alternatives across the housing sector.
Jake Hand, Group Managing Director at Evolution AM commented: “This investment from the South West Investment Fund is helping us accelerate the rollout of Medusa and strengthen our position in the fast‑growing 3D‑printing market. The backing from FSE gives us the confidence and capability to push forward with innovation, expand our team and continue building world‑class technology here in the South West.”
Hervé Dehareng, CEO at Luthmore, added: “The South West Investment Fund has played an important role in helping us move from development into commercial deployment. This investment enables us to scale production and bring our zero‑emission boiler technology to more homes across the UK. We’re excited about the growth ahead and pleased to have FSE’s continued support as we expand.”
The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. The fund is increasing the supply and diversity of early‑stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.