The financial injection will allow a management buyout of SafeGuard Glazing Supplies, in Papyrus Road, from BCF Equity Partners.
The investment, from the £100 million Foresight East of England Fund, will also support plans to increase the company’s production capacity and deliver long term sustainable growth.
Safeguard Glazing Supplies is led by managing director Nick Welsh, whose father founded the company in 1995.
The firm currently employs about 100 people at its 28,000 sqft facility.
Mr Welsh said: “The whole team at Safeguard is delighted to be working alongside Foresight during this exciting period for the business which will see the construction of an extension to our Manor Drive site, significant investment in state-of-the-art machinery as well as the creation of skilled jobs in the area.”
Matt McLoughlin, senior investment manager at Foresight’s Cambridge-based East of England Fund, said: “It has been a pleasure getting to know Nick and the team at SafeGuard.
“The company has huge potential and I am looking forward to supporting them in their next phase of growth.”
He added: “This deal involved many professional advisors from the Peterborough area and we look forward to working with the local community as the company makes progress over the coming years.”
The £100 million fund was created last year and is cornerstoned by the Cambridgeshire Pension Fund.
Councillor Alison Whelan, chair of the pension fund, said: “The investment into SafeGuard is another exciting opportunity for the Foresight East of England Fund to support a well-established business at the heart of the region.
“SafeGuard has a great reputation for its quality products and exceptional customer service and I am delighted that the fund has invested in another leading local business.”