Our Charter

Institutionalising the Future of Zero and Low-Dilution Capital for SME Growth

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1. Overall Objective

The Growth Credit Association (GCA) is a specialised industry body established to define, expand, and institutionalise venture debt and growth credit across all stages of company growth.

The aim of GCA is to establish growth credit and venture debt as a distinct asset class, enhancing the mechanisms and regulations supporting it to:

(i) Increase adoption by high-growth SMEs and businesses that benefit most from less-dilutive, flexible financing solutions;
(ii) Enable greater levels of institutional capital to participate and benefit from the asset class's distinctive risk–return profile.

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2. Background & Importance of Growth Credit

The dominance of traditional VC and private credit vehicles has left a funding gap for high-growth SMEs. Equity capital is increasingly selective and expensive, while private credit targets later-stage businesses. Less-dilutive instruments such as growth credit are increasingly appropriate for this underserved segment.

Market Context: 

• European growth credit deal value reached $20bn in 2024

• 589 deals were completed across Europe, a 21% CAGR since 2018

• 23% of these originated in the UK, showing its centrality to the market

• SMEs comprise over 90% of UK businesses and account for three-fifths of private sector jobs

• UK SME lending is at record lows, with a £65bn credit shortfall, especially for growth and working capital

• The UK has the lowest investment rate in the G7, particularly for SMEs

 

Growth Credit Offers:
To SMEs – runway extension, non-dilutive scale capital, and flexibility at critical growth points

To Investors – structured downside protection, scalable returns, and reduced exposure compared to traditional venture equity investments
To the UK economy – a route to stimulate productivity, innovation and employment by funding the most dynamic segment of the business base

 

3. Vision Statement

To propel SME growth and national productivity by establishing growth credit as a recognised asset class and a core part of the SME finance ecosystem.

Strategic Objectives:

A. Define Growth Credit as a Distinct Asset Class
Clarify the boundaries and characteristics of growth credit, distinct from venture capital, private credit, and revenue-based finance.

B. Build Capital Allocation Mechanisms
Collaborate with institutional LPs, government-backed vehicles, and family offices to develop bespoke mandates and fund structures that channel capital into the asset class.

C. Empower SMEs with Fit-for-Purpose Capital
Advocate for growth credit as a flexible, risk-aligned tool for scale without dilution, governance loss or timing mismatches.

D. Drive Economic Impact via SME Finance
Promote growth credit as a pillar of UK scale-up strategy, particularly for sectors that drive innovation, export, and employment.

E. Secure Policy and Regulatory Recognition
Ensure growth credit is recognised within UK financial policy frameworks through regulatory definitions, tax treatment, and institutional asset classification.

 

4. Core Activities

Grouped under three delivery pillars:

1. Market Standards & Infrastructure

   • Develop and publish shared definitions, frameworks, and benchmarks

   • Provide standard documentation and performance analytics infrastructure

2. Capital Access & Policy Influence

   • Work with LPs, HMT, BBB, DBT and regulators to expand supply-side funding

   • Advocate for growth credit inclusion in industrial and investment policy

3. SME Enablement & Ecosystem Mobilisation

   • Run education and matchmaking programmes to support adoption

   • Act as a convenor for market actors to align on industry priorities and voice

 

5. Governance Structure

GCA is a Company Limited by Guarantee (CLG) and registered on Companies House in order to limit liability for members and lend credibility to the organisation.  The members will elect a governing body comprised of a Chair, Vice Chair, Secretary, Treasurer and Board of Directors.

Founding Members:
Anthemis Group, Atempo Growth, Beach Point Capital Management, Claret Capital Partners, Columbia Lake Partners, Espresso Capital, Gilion, Mountside Ventures, Nighthawk Partners, Palatine Private Equity,  Prefcap, Salica Investments, Stride Ventures

 

Governance Principles:

The Growth Credit association is follows the principles of one-member, one-vote, irrespective of size of the member institution.  The aim is to ensure a thriving ecosystem with a diversified pool of offerings for borrowers.  Positions of responsibility are elected by members.

 

5a. Strategic Partners and Observers

To support policy alignment, external validation, and system-wide collaboration, GCA will invite a small group of strategic institutions to engage as Observers or Strategic Partners.

These organisations will not hold membership or voting rights but will be engaged in GCA activities to ensure ecosystem integration and policy coherence.

Proposed invitees include:

• HM Treasury (HMT) – Regulatory and fiscal coherence

• British Business Bank (BBB) – SME finance infrastructure and blended capital

• City of London Corporation – Convening power and market influence

• British Private Equity & Venture Capital Association (BVCA) – Transition pathway and technical alignment

• Department for Business and Trade (DBT) – SME strategy and growth capital alignment

• National Wealth Fund (NWF) – Co-investment models and long-term capital participation

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Benefits to Strategic Partners:

• Visibility in a pioneering industry initiative

• Early insight into market development and pipeline

• Opportunities to shape frameworks, strategy and policy engagement

• Participation in events, roundtables and knowledge sharing

This engagement model ensures GCA remains industry-led but institutionally aligned.

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