Motor insurance and loans group Admiral has made a strategic investment into a fund dedicated to supporting the expansion of mid-market companies across the United Kingdom. The Wales-based FTSE 100 firm has committed capital to HSBC Asset Management's UK Direct Lending Fund, a move that underscores its commitment to fostering sustainable business practices and economic development.
Supporting Key UK Businesses
The HSBC UK Direct Lending Fund has already provided essential capital to numerous British enterprises, enabling them to scale their operations and broaden their customer reach. Among the beneficiaries are Impact Food Group, a supplier of high-nutrition school meals based in Woking, and TXO, a telecommunications hardware recycling company headquartered in Chepstow.
Impact Food Group: Nourishing Students and Reducing Waste
Impact Food Group, which received backing from the fund last year, specialises in delivering nutritious school meals while prioritising the reduction of food waste and minimising its carbon footprint. The company's mission is to transform lives through the power of food, ensuring that every meal served enhances student well-being, attendance, and academic performance.
TXO: Pioneering a Circular Economy in Telecoms
TXO offers telecom asset recycling and related services that support the transition towards a circular economy by extending the lifespan of critical equipment. This approach significantly reduces waste and lessens the environmental impact associated with production cycles, aligning with broader sustainability goals.
The Economic Engine of the UK
Mid-market companies, typically generating revenues between £25 million and £500 million, are widely regarded as the economic engine of the UK. These firms drive local job creation, foster innovation, and contribute substantially to regional and national prosperity. Admiral has chosen not to disclose the specific amount of its investment into the debt fund, but the strategic nature of the move is clear.
Executive Insights on the Investment
Geraint Jones, Chief Financial Officer of Admiral Group, commented on the investment, stating, "Our investment demonstrates our commitment to operating in a sustainable way and enables us to help even more people to look after their future by supporting businesses which make a significant impact in communities. It has been great to see the on-the-ground impact of the Fund and showcase that our investments can generate attractive financial returns and positive change for society."
Frank Bandura, Chief Financial Officer of Impact Food Group, added, "We aim to transform lives through the power of food – ensuring that every meal we serve makes our students happy, better able to attend, focus and enjoy school and leads them to achieve better outcomes. The funding structure from HSBC and their investors has enabled our business to scale rapidly, furthering our impact on students."
Deepak Seeburrun, Head of Global Insurance and Partnerships at HSBC Asset Management, expressed pride in the fund's success, saying, "We are incredibly proud of the success of our Direct Lending platform to date, and delighted to have the continued support of Admiral, alongside many other clients. Our partnership approach provides unique access to UK mid-market loans, combining the skill and experience of HSBC AM’s Direct Lending investment team, and the unparalleled market position of HSBC UK Bank."
This investment by Admiral into the HSBC fund highlights a growing trend among major corporations to engage in sustainable finance initiatives that not only yield financial returns but also drive positive social and environmental outcomes. By backing mid-market firms, Admiral is playing a pivotal role in strengthening the UK's economic fabric and supporting businesses that are making tangible differences in their communities.
