Beechbrook backs Allegro film finance with GBP £2m

Beechbrook Capital has provided a £2 million working capital facility to Allegro Finance through funds it manages on behalf of the British Business Bank.

The facility will support the expansion of Allegro's film and television lending platform, which provides senior secured production finance to UK producers. It follows a separate $500 million strategic joint venture and senior funding line with entities advised by Elliott Advisors UK, which has already increased Allegro's lending capacity across the sector.

Allegro is a specialist non-bank lender to film and television productions. Its loans are backed by contracted production receivables, including tax credits and presale distribution minimum guarantees, and it also lends against unsold rights.

The new funding will support investment in staff, systems and operational infrastructure as the business grows. Increased internal capacity should help Allegro originate, underwrite and manage a larger book of production loans.

This is significant in a market where producers often need finance during production before receipts are collected. Allegro's model is designed to provide repeat funding while keeping lending secured against assets and contracted income streams.

Growth plans

Sam Collett outlined how the facility fits into Allegro's expansion plans.

"This working capital facility is a powerful catalyst for Allegro's growth and we are grateful for the support from Beechbrook and the funds they manage on behalf of the British Business Bank. It enables us to scale the platform and deploy private institutional capital into the UK film and television sector at a level not previously seen. This is precisely how public capital can unlock private investment, support high-growth businesses and strengthen one of the UK's most globally competitive industries," said Sam Collett, co-founder and chief finance officer of Allegro Finance.

Beechbrook, a European private credit manager founded in 2008, said the investment reflects its broader focus on growth and employment. The firm manages more than £1 billion of commitments for institutional investors and targets lower mid-market strategies.

Paul Shea, Managing Partner of Beechbrook Capital, said the investment reflects both the economic importance of the UK's creative industries and Allegro's market position.

"We are delighted to invest in Allegro Finance with the funds we manage on behalf of the British Business Bank. All our funds seek to support growth and job creation, and this investment is no different. The UK's creative industries are a vital part of the economy, employing hundreds of thousands of people and driving significant cultural and economic value," said Shea.

"This facility will enable Allegro to accelerate capital deployment to producers and production companies, materially increasing the funding available for film and television production. The Allegro team are highly experienced and bring a disciplined, institutional approach to the sector. This represents a compelling opportunity to back a high-quality team, with funds invested by the British Business Bank, into a leading UK industry to support continued growth and job creation," Shea continued.

Sector focus

The transaction also reflects the British Business Bank's strategy of backing specialist financial intermediaries that lend into sectors seen as priorities for UK growth. Rather than funding producers directly, it provides finance through investment managers and lenders that can extend capital into specific markets.

In this case, Beechbrook is deploying capital into a specialist lender focused on film and television productions. The structure is intended to channel public-backed funding into a niche area where traditional lenders may be less active.

Adam Kelly linked the move to the wider economic contribution of the creative industries.

"The UK's creative industries play a vital role in the government's Industrial Strategy, employing 2.4 million people and contributing £124bn of Gross Value Added to the economy. By providing finance to Beechbrook Capital, and in turn supporting specialist platforms like Allegro Finance, we support businesses to access the finance they need to start, scale and stay in the UK," said Adam Kelly, Managing Director and Co-head of Funds at the British Business Bank.

The deal adds another layer of funding to Allegro's capital base as it expands its role in production finance for UK film and television. Combined with the earlier $500 million arrangement, the new £2 million facility gives the lender additional balance-sheet support to grow its platform and attract more institutional capital into the market.