Fintech LAVA raises £8m from Beechbrook Capital
This article covers LAVA, an M&A advisory startup, securing £8m in debt financing from Beechbrook Capital to accelerate a three-pillar growth plan while retaining 100% employee ownership through an employee ownership trust. The funding is intended to support international expansion, operational upgrades and leadership development and highlights a route for professional services and mid-market advisers to access non-dilutive institutional capital without an equity sale.
LAVA has raised £8m in a growth funding round via debt financing from Beechbrook Capital, allowing the M&A advisory to accelerate a three-pillar growth plan while retaining 100% employee ownership through an employee ownership trust (EOT). The deal is notable because it uses non-dilutive capital to fund international expansion and operational upgrades without exposing the firm to an equity sale or exit.
Why it matters
The financing highlights a route for professional services firms to scale without surrendering control. By using £8m of debt rather than selling equity, LAVA preserves its EOT structure and the stability that employee ownership provides to staff, clients and partners. For a mid-market M&A adviser that positions itself as a values-led B Corp, that continuity can be as important as raw growth capital.
This deal also signals that specialist SME lenders like Beechbrook Capital are willing to back advisory firms, not just trading businesses, expanding the types of companies that can access institutional, non-dilutive growth funding.
Inside the product
LAVA offers bespoke M&A advisory across buy-side, sell-side and advisory mandates, emphasising creative dealmaking tailored to each engagement. The firm says the new capital will be directed at three strategic pillars: partner-led sector expertise, preparation for international expansion, and futureproofing operational infrastructure to support sustainable growth.
Operational plans include leadership development — notably the promotion of Tom Rowe Jones to partner — and a planned refresh of office space and systems intended to support a larger, geographically broader practice. LAVA’s positioning as a certified B Corp and its stated commitment to donating 2.5% of revenue to charities are part of the firm’s identity but do not change the financial mechanics of the deal, which is structured as debt.
Who are the investors?
The funding was provided by Beechbrook Capital, described in the announcement as one of Europe’s leading SME lenders. The investment is a debt package rather than an equity round; Beechbrook is supporting LAVA on the basis of the firm’s structured growth plan and leadership team.
In the announcement, Elliot Gargan, Investment Director at Beechbrook Capital, said:
LAVA has a clear and consistent view of where the business is going, supported by a strong market opportunity and a leadership team with the experience and determination to deliver its plans. The momentum around the firm is supported by a clear strategy and a properly structured growth plan. That, along with our past interactions, gives us confidence in the business and makes LAVA a compelling firm for Beechbrook to support.
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Founder perspective
In the announcement, Hamish Martin, Partner at LAVA, said:
When we decided to consider an investment injection to unlock our latest growth strategy, we were of course better placed than most to understand the range of options available. As is the LAVA way, we explored all possible routes before ultimately taking the path that we would advise our clients to, and agreeing to £8 million in debt funding from Beechbrook. We have always tried to run LAVA in the way we would advise our clients to run their own businesses. Having reviewed the options as carefully as we did when establishing the EOT, we chose funding that supports our ambitions while preserving both our independence and our employee ownership structure, and allows us to keep our people at the heart of our process.
In the announcement, Simon Woodcock, Partner at LAVA, said:
We’re really proud of what we achieved in our first five years. The team, the clients, the values we’ve established in such a short time have given us a rock-solid foundation for growth. With our plan for the next five years underway, we’ve set ourselves ambitious goals around our strategic pillars, and with the support of an institutional investor like Beechbrook, it’s full steam ahead.
The bigger picture
The deal sits at the intersection of two trends in the UK market: growing use of employee ownership trusts as an exit and governance strategy, and wider availability of institutional debt for growth-stage companies. For professional services firms and advisers that want to scale without diluting ownership, debt packages from SME lenders are becoming a viable alternative to private equity.
For the fintech and M&A ecosystem more broadly, the transaction is a reminder that capital markets offer diverse instruments beyond equity for funding expansion. LAVA’s choice to remain entirely employee-owned while taking institutional debt may prompt similar firms to reassess financing options as they plan international moves or operational upgrades.
Across the UK and Europe, the deal underscores a maturing market for non-dilutive financing and the continued role of specialist lenders in supporting mid-market growth.
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