The investment will allow the company to accelerate its growth, fund new loans, and develop and launch a new product later this year.

As part of the deal, investors from the three family offices will join SME Capital’s board to offer their experience in a variety of sectors, including healthcare, e-commerce, transport, retail, real estate and financial services.

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James Kaberry, founder and CEO of SME Capital, said: "Having like-minded investors as energised as we are about supporting SMEs is vital. 

“When financing in this part of the market was hurt by scaled-back bank lending, it masked a huge number of quality, ambitious British companies ripe for growth. 

“Even in the pandemic, these firms pivoted and created opportunities where others saw challenges; many of them are family businesses and entrepreneur-led, and are all looking to get to the next level. 

“This fresh support from our new investors will help them achieve that and, in turn, drive the UK economy forward.”

David Newns, founder of Mustard Kick, commented: “No matter how great an SME is, it’s normally locked out of growth opportunities like an M&A event simply because the financial support isn’t in place. 

“SME Capital is a real game-changer for the entrepreneurs it serves; it has a great product-market fit and its customers really value them. 

“For someone like me who has started, scaled and sold my own businesses, I know how important it is to have this kind of support.”

Nima Sarikhani, managing partner at Hambleden Capital, added: “As an investor, this is an amazing opportunity in a seriously underserved space. 

“SME Capital is special; not only does it have skin in the game by investing its own capital alongside institutions in the SMEs it serves, but it’s close to these businesses and works as a supportive and flexible partner. 

“It chooses customers wisely, it really gets under the hood and understands the business and the people behind it, and it fosters close working relationships with them.”

Arjun Patel, managing partner at Karan Capital, stated: “The bespoke, relationship-driven approach from SME Capital is a boon for its customers. 

“It’s a strong, deeply skilled team helmed by high quality leadership, and the family offices extend that by offering a range of multi-sector skills and experience. 

“We’re founders who, having scaled businesses to successful exits, reflect the ambitions of SME Capital’s customers.”