London-based investor IW Capital has launched a £30m fund targeting UK-based SMEs following the completion of a management buyout.

Founded in 2011, IW Capital has backed around 40 UK startups including peer-to-peer currency swap group WeSwap and health tech company GPDQ.

The new fund will focus on businesses with a proven model ready to scale. The investor said the size of the fund will allow for larger cheques in backed firms.

“Our approach means we have continued to see success regardless of the economic environment; in fact, 2023 was our most active year to date,” said CEO Tariq Attia.

“It is hugely exciting to embark on a new chapter for IW Capital, with a talented team bringing the best of youth and experience to support the most exciting growth businesses in the UK today.”

IW Capital has made eight exits to date and manages assets worth more than £150m.

Commenting on IW Capital’s investment approach, Chairman Alan Armstrong said:

UK SMEs are a core driver of employment and GDP and we pride ourselves on being an active, supportive partner,” said chairman Alan Armstrong.

“We combine the agility and entrepreneurship of venture capital with the long-term commitment of private equity to ensure some of the most promising businesses in the UK today have the financial and commercial support they need to realise their potential.”