Founder-led growth businesses
Companies past product-market fit and at £2m+ EBITDA looking for growth capital to scale without losing the operating team.
Equity
Raising equity: growth capital, buy-outs, and minority investments.
Whole-of-market access to PE houses across the UK. Independent placement, no commission spread on the deal terms.
What it is
What raising equity means at Bedrock.
Equity raising at Bedrock means brokerage to growth equity funds, private equity houses, and family offices. We place minority stakes for founders seeking capital without ceding control, growth equity rounds for scale-ups past Series A, and majority buy-outs where the cashflow alone won't support pure debt financing.
Our PE network is whole of market. We are not retained by any single house and we do not take placement fees from the investor side, so the recommendation we make to a borrower is not steered by which fund pays best. Borrowers see the full set of credible investors for their deal profile.
The process is rigorous. Equity raises require an information memorandum that stands up to scrutiny, a financial model that survives diligence, and a management team ready for PE-grade questioning. We work alongside accountants and lawyers to get the company investor-ready before we go to market.
Who it's for
Common deal profiles.
Three patterns we see most often. The first conversation finds out which one you're closest to.
MBO and MBI teams
Management teams executing a buy-out where bank debt alone cannot fund the deal and equity needs to share the risk.
Founders planning an exit
Owners with a 12-36 month exit horizon looking for a partial cash-out at a credible valuation while retaining upside on the run-up to full sale.
How we structure it
Facility shape and timeline.
- Deal sizes
- £1m to £100m+ equity ticket
- Investor types
- Growth equity funds, private equity, family offices, strategic minority investors
- Structure
- Minority growth stake, majority buy-out, recap, or hybrid debt-plus-equity
- Timeline
- First-round indicative offers 6-10 weeks from go-to-market. Full process 4-9 months to completion.
Who investors back
What equity investors look for.
Growth equity and private equity investors back businesses with a proven model, a strong management team and a credible plan to grow value over the investment period. For growth capital, the businesses we see most often are founder-led companies with £2m or more of EBITDA.
Investors look closely at revenue quality, margins, market size, competitive position and, above all, the people. They also want to understand what the money is for and how they expect to realise a return, usually through a sale or refinancing several years later.
Process
How an equity raise works.
A raise starts with preparation: an information memorandum, a financial model and a clear view on valuation and the size of stake on offer. We then approach a shortlist of investors whose mandate fits the sector, deal size and type of transaction.
Interested investors submit indicative offers. The preferred investor then carries out detailed due diligence, typically financial, commercial and legal, and often tax and technology, before final terms and legal documents are agreed.
Deal terms
Deal terms beyond the valuation.
Headline valuation is only part of the deal. Investors negotiate the instrument (ordinary shares, preference shares or loan notes), board representation, consent rights, management incentive arrangements and the terms that apply on exit. Two offers at the same valuation can leave founders in very different positions.
We help founders compare offers on all of these terms, not just the price, and consider whether some of the requirement could be met with debt to limit dilution.
Sectors
Sectors where this product fits.
The sectors below are where this product fits most often. Each links to a fuller sector page.
FAQ
Common questions.
Straight answers on how raising equity works for UK limited companies.
What is the difference between growth equity and private equity?
Growth equity usually means a minority investment in a profitable, growing business, leaving the founders in control. Private equity more often refers to majority buy-outs, where the investor takes control alongside management. Many funds do both, and the right fit depends on how much control and liquidity the founders want.
Will we lose control of the business?
Not necessarily. A minority growth investment leaves the founders with majority ownership, although investors usually ask for board representation and consent rights over major decisions. A majority buy-out transfers control to the investor.
What do equity investors look for?
A proven business model, good-quality recurring earnings, a capable management team, a large enough market and a credible plan to grow value. Investors also need a realistic route to a return, usually a sale or refinancing several years after they invest.
Can debt and equity be combined?
Yes. Many transactions, especially management buy-outs, combine senior debt with an equity investment. Some debt can reduce the amount of equity needed and so limit dilution, provided the business can service the borrowing comfortably.
Guides
Guides for this product.
Sector analysis from Bedrock on how this product is structured and underwritten in practice.
Financial ServicesDebt, equity, or both: structuring partner buy-ins and consolidator roll-ups
A partner buying into an IFA, a founder selling to a consolidator, and a serial acquirer funding a buy-and-build are three different problems. Each one resolves into a different split between debt, equity, and deferred consideration.
PharmaceuticalsFunding the regulatory runway: capital before a medicine can legally be sold
Why senior debt is the wrong question before MHRA approval, and how equity, non-dilutive grants, R&D tax credits and milestone-based venture debt carry a pre-revenue pharma business through clinical and GMP approval to first lawful commercial sale.
Professional ServicesCashflow loan or equity? The funding fork for consolidating advisory firms
Private equity now owns a fifth of the UK's larger accountancy firms and a swathe of listed law consolidators. An independent acquirer competing for the same targets has to decide what debt can fund and where equity has to start.
TechnologyVenture debt or another equity round: when revenue-stage tech should borrow
Venture debt costs a slice of warrants where a fresh round costs 15 to 30 percent of the company. For a revenue-stage business bridging to a real milestone the arithmetic decides it: provided the cash can service the loan.
Need raising equity for your business?
Five minutes on a call gives us enough to come back with indicative options once we've sounded out the right funders.