Rising momentum in SME lending is proving beneficial for businesses across the UK. According to UK Finance, high‑street banks saw a 30 % year‑on‑year increase in loans to firms with annual turnover under £2 million during Q1 2025, reaching nearly £4.6 billion, the highest level since mid‑2022. This marks the sixth consecutive quarterly rise, complementing growth in non‑bank financing. Despite the overall SME credit market remaining £90 billion below pre‑Covid norms, the expansion is encouraging.
Government and lenders are also steering capital toward more sustainable business models. Lenders increasingly favour SMEs with credible net‑zero plans, creating a virtuous cycle between funding access and environmental responsibility. Meanwhile, ministerial engagement aims to boost credit availability and address loan rejection rates, currently under 50 %, by expanding the British Business Bank guarantee scheme.
In this thriving landscape, Duke Capital is positioning itself as a versatile and supportive partner for SMEs. The Guernsey‑based hybrid capital specialist provides a blend of debt and equity in long‑dated, flexible structures that enable management teams to fund acquisitions, refinancings and growth initiatives without losing control.
Recent announcements highlight Duke’s momentum:
- A £2 million follow‑on investment in Tristone Healthcare supports its acquisition of Serenity Care Homes, boosting Duke’s total financing to £21.2 million alongside a new 28.4 % equity stake.
- A £3 million injection into New Path Fire & Security helps facilitate their bolt‑on acquisition of Elite Entrance Systems, increasing Duke’s shareholding to around 20.9 %.
- Duke reports recurring quarterly cash revenues of approximately £6.5 million for Q4 FY25, a solid 12 % increase year‑on‑year, reflecting the strength of its hybrid financing model.
- Notably, Duke continues to benefit from the resurgence in SME lending and green finance trends, having recently highlighted sustainability‑driven revenue growth in their commentary.
All signs point to a prime moment for hybrid capital providers. As traditional lenders cautiously return, there remains a structural lending shortfall in the SME sector that agile models like Duke’s are well-placed to fill. Their evergreen, royalty‑style approach offers SMEs the flexibility they need for sustained growth, while aligning returns with long‑term performance.
Duke’s ongoing follow‑on investments and healthy revenue trajectory attest to both market opportunity and solid execution. Their model supports businesses through buy‑and‑build strategies, management buy‑outs, refinancing and equity restructuring, all under one unified offering . In doing so, they not only contribute to the revival of SME finance but also position themselves at the forefront of a positive, sustainability‑driven transformation in the sector.
The SME finance landscape is evolving rapidly. Greater bank involvement and a renewed focus on green credit are shifting the dynamics. In this context, Duke Capital’s hybrid capital platform offers uniquely adaptable solutions that meet the multifaceted needs of growing firms, while delivering recurring returns and supporting long‑term value creation across its portfolio.
