£3m funding for Heartstone

Recently-formed Heartstone Inns has raised a further £3m in a second round of private-equity funding, enabling it to rapidly expand its chain of freehold food-led country pubs serving local produce.

The funding provided by Halogen Holdings, which was introduced to Heartstone by Beer & Partners, will be used to acquire hand-picked sites as well as building the infrastructure required to grow the chain effectively.

Based in the South and South West, Heartstone Inns was launched at the start of 2007 by managing director Stuart Hawthorn and finance director James Birch, both of whom have extensive experience in the UK pub and brewing sector, having worked at Greene King, Innspired and Refresh UK.

Heartstone's initial equity backing came from Bfm Partners, a privately-owned fund management and investment company established by Andrew Haining and Robin Black, formerly partners of Botts & Company. Lloyd Marshall and Edward Beale, both directors of Halogen Holdings, have been appointed to the board to represent the interests of Halogen alongside the founder directors.

This equity round - and subsequent rounds - will be complemented by a long-term funding line from HSBC, enabling the chain to grow from its existing two sites to around 30 or more within the next three to five years.

Hawthorn said: "This funding round, with options and further commitments, will bring in nearly £4.5m over the next few months."