Growth fund takes £4.2m Benefex stake

A fund set up to help smaller companies has announced its first investment, taking a multimillion-pound stake in an online employee reward and benefits provider.

The Business Growth Fund (BGF) said it was investing £4.2m in Benefex, which has more than 500 clients. The company said the money would help it to create 100 jobs in Southampton, Marlow, Bucks, and London.

The BGF is an independent company with capital of up to £2.5bn, backed by Barclays, HSBC, Lloyds, RBS, and Standard Chartered – and managed by an independent management team.