The fund, which asks for stakes of between 10% and 50% in businesses in return for investments between £2m and £10m, previously came under attack from the Forum of Private Business for focusing solely on companies with turnovers of between £10m and £100m.

Figures from the Department for Business, Innovation and Skills (BIS) at the time suggested that only 5% of SMEs have funding requirements surpassing £1m.

The fund has now clarified the situation stating that companies that have a turnover of £5m could also be eligible.

A spokesperson for the fund said that key criteria was "growth and growth potential", which therefore includes businesses with £5m to £6m turnover that have the potential to grow quite quickly to £10m.

However, the minimum £2m equity investment means that investing in companies with sub-£5m turnover is unlikely as the fund would end up acquiring a majority stake.

The BGF has also appointed Jon Ward as its director of communications and marketing at a time when the fund is set to announce its first investments.

Ward said: "BGF’s success will be built on the close relationships we can build with businesses across the UK, and with the communities of which they are a part.

"Fast-growing businesses need to be properly aware of what is on offer and how the BGF can help them fulfill their potential. First class communications lies at the heart of this process."