The bank-backed Business Growth Fund (BGF) has provided £4.4 million of equity capital to Yorkshire-based domiciliary care provider Springfield Healthcare Group.

Under the terms of the deal, the BGF has made two commitments: a total of £2.5 million to Springfield Healthcare and £1.9 million to Seacroft Care Village.

The two deals follow on from the Fund’s support of the Cennox group of companies (ATM Parts and Mainet) through a £3 million allocation and a £4 million transaction with online garden products retailer Primrose.

Established in 1967 as a single family-run care home, the business now provides care to 2,000 people a day.

Stephen Welton, chairman of the £2.5 billion fund, says that the closing of four deals during June for the BGF is ‘very encouraging’.

He adds, ‘We are now averaging two investments per month, which will continue to rise. [It] keeps us on track to achieve our mid-term goal of making 40 plus investments per year with a combined initial value of £250 million.

‘Equally, as our portfolio companies grow, they will need follow-on capital and BGF has been structured with this flexibility in mind. Assuming half of our investee companies raise follow-on capital, this could easily and quickly add an additional £100 million or so to our annual investment level.’

As part of the deal with Springfield Healthcare Group, Leeds-based Springfield Homecare will receive £2.5 million to expand its geographical reach and increase the number of hours of care it can provide.

Seacroft Care Village’s £1.9 million allocation will be used alongside existing funds to develop a purpose built facility in Leeds to offer care options such as day care, residential, dementia and nursing care.

Andy Gregory, BGF regional director for the North of England, comments, ‘As we have got to know the business, we have been impressed with its growth plans.

‘With an ageing UK population and increased demand for high quality healthcare services, Springfield are well placed to deliver the services required.’