Australian Business Growth Fund doubles first cheque size to $30 million

The Australian Business Growth Fund (ABGF) has lifted the limit on how much it can invest in individual businesses, doubling its maximum initial investment in SMEs from $15 million to $30 million.

The government-backed fund has also increased the overall amount it can invest in a business to $50 million, including follow-on investments, and expanded its investment mandate to allow it to take a majority stake in a business if its founder wants to reduce their shareholding.

The changes represent a significant new chapter for the fund, which was established in 2020 with an initial commitment of $540 million from the federal government and the nation’s largest banks.

The fund now has greater flexibility and therefore more capacity to help more growing Australian businesses, said ABGF chief executive Anthony Healy.

The fund has previously turned away businesses that were looking for larger cheques or different ownership options, added Healy.

“These changes mean bigger backing, more flexibility and better access to capital for growth-ready Australian SMEs,” he said in a statement provided to SmartCompany.

“Our purpose and core mandate remains the same: we back Australian business owners to keep building. We can now provide the right investment for more businesses and more stages of their growth.”

ABGF backs defence supplier Griffin Industrial Group

The fund’s expanded mandate coincides with its latest investment in defence supplier Griffin Industrial Group, announced this week.

ABGF has not disclosed the size of the investment except to say that it is a “multimillion” deal.

The fund has historically invested between $5 million and $15 million when backing a company for the first time, and SmartCompany understands the investment in Griffin falls within this range.

This is also the case for the ABGF’s investment in digital queue and appointment management platform NEXA, which was announced in March 2026.

NEXA and Griffin are the latest companies to join the ABGF portfolio, which currently includes 3ME Technology, Consolidated Linen Service, Evolution Trustees, Hubbed, HMC Group, Inskin Cosmedics, Modra Technology, Solbari and Total Green Recycling.

The investment from ABGF is expected to help Griffin scale its operations, which involve building and maintaining naval ships and marine infrastructure.

The 12-year-old business operates from Australia’s four major naval homeports – Henderson (WA), Sydney (NSW), Darwin (NT) and Cairns (QLD) – and employs more than 200 people.

“Griffin is exactly the kind of business ABGF exists to back: Australian-grown, nationally significant and building the skills and sovereign capability our nation needs,” said Healy in the statement.

“Australia needs strong sovereign businesses to deliver its defence ambitions. ABGF is committed to backing the companies and founders building the skills, technology and capability to make that happen,” he added.

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