Looking for Finance?
Need more information?
Advice and Support
Visit Business Link Northwest to access independent advice and guidance on the best support for your business.
Alternatively call
0845 0066 888
to speak to an advisor
Northwest Interim Venture Capital Loan Fund makes first equity investment
Tuesday 30th March 2010
• £300k has been invested in Fresh T
• £10m Interim VCLF deals under review with several
close to contract
Northwest VCLF update
NW Business Finance Ltd (Holding Fund)
• Chairman and board appointments completed
• CEO of Northwest Business Finance Ltd appointed
• Northwest Business Finance Ltd Investment Advisory Panel
set up
Procurement of Fund Managers
• 39 tenders received across four Lots
• Currently appraising and validating bids for appointment of
fund managers to the framework panel
The Northwest Regional Development Agency (NWDA) and the European Regional Development Fund (ERDF) on behalf of a new holding company Northwest Business Finance Ltd (NWBF) can today announce the structure of the new long term Venture Capital and Loan Fund (VCLF) for the Northwest which will be one of the largest public sector VCLF in Europe and the largest in the UK. On the same day the first investment has been made from the Interim VCLF.
The new private company, NWBF, has been established to oversee the delivery of the new long term VCLF, under the Joint European Resources for Micro to Medium Enterprises Initiative (JEREMIE) in the Northwest.
In the mean time VCLF finance is available now to businesses in the Northwest through the Interim funding pot and business can apply for this funding through Business Link Northwest and the first investments are now taking place.
Rosie Winterton MP, Joint Communities and Business Minister, who visited the NWDA in Warrington yesterday (29th March), to meet with the NWDA and 25 businesses to discuss the outcomes of the Budget also welcomed the first Interim VCLF investment and progress on the long term Northwest VCLF, said:
"I am delighted to see progress being made on the long term Northwest VCLF. As one of the largest funds of its kind in Europe it will help create thousands of jobs, support hundreds of businesses and help ensure the region's future economic prosperity. The fund will be with us in the summer but businesses don't need to wait - the NWDA's Interim fund is available now and I would encourage businesses to apply immediately."
Whilst the Northwest VCLF has taken longer than anticipated to deliver it is now in the final stages, with several milestones reached this week including; the appointment of the Chairman, Board, Managing Director and Investment Advisory Panel for Northwest Business Finance Ltd, all now completed.
NWBF Chairman:
Lord Daresbury has been appointed as the new Chairman of NWBF Ltd.
Peter Daresbury is Chairman of several companies including, Aim
listed Nasstar PLC, Stellar Diamonds PLC, Mallett PLC and Aintree
Racecourse.
Lord Daresbury said: "I am delighted to take on this important role for what will be one of the most important funding support streams available in the region. Venture capital and loan funding of this type is vital for the growth of our businesses and our economy and I am looking forward to this exciting role."
NWBF Board:
The board for NWBF is made up of senior and experienced figures
from across the professional services sector across the region. The
Board includes:
• John McGuire, Former MD of the Corporate Banking
Division, for Royal Bank of Scotland Group
• Michael Prince, Former Corporate Partner for DLA Piper
• Clive Brook, Former Corporate Finance Partner at PKF
• David Read, Head of Business Finance, NWDA
NWBF Chief Executive Officer:
An experienced CEO for NWBF has also been confirmed with Andy
Leach, who has 24 years experience in the Private Equity market,
latterly as Portfolio Director with LDC, the leading UK regional
mid-market private equity house and part of the Lloyds Banking
Group, being appointed to the position.
Investment Advisory Panel:
In addition to the Board, NWBF will have an Investment Advisory
Panel. The members have now been identified and confirmed and more
details will be announced shortly.
Fund manager appointment:
Following market testing with fund managers the
VCLF is to be divided into four lots for procurement of fund
manager services to provide for a range of debt, equity and
quasi-equity. The four lots include:
• Development Capital Fund
• Venture Capital Fund
• Loan Fund
• Priority Sector Growth Fund
The NWDA has received 39 bids across the 4 Lots and is currently appraising and validating these bids. We will appoint fund managers to the framework panel in April and following a thorough process will appoint the fund managers in June.
Robert Hough, Chairman of Northwest Regional Development Agency
(NWDA), said:
"I am delighted to be announcing the first investment from the
Interim VCLF and progress on the long term VCLF for our region. It
is important that businesses recognise that we have public sector
VCLF funding available to them now and it is encouraging to see
that we have almost 40 applications in the system already. The long
term fund will be with us in the summer but we have the funding in
place now to help and I would welcome more businesses getting in
touch and applying for this support."
VCLF awards:
In the mean time businesses in the region are accessing equity and
loan funding. The Interim VCLF, managed by YFM and AFM, has
received a high level of enquiries with the fund managers.
Businesses interested in VCLF funding should contact Business Link
Northwest.
The Interim VCLF currently has 37 applications under active review totalling £10m; of which a number are close to contract stage and more details on these awards will be announced in the coming weeks.
The first equity investment of Interim VCLF has been completed today to Fresh T, a computer software and service company. Fresh T is looking to develop their business and establish a foothold in the growing Cloud Computing market (Internet-based computing, whereby shared resources, software and information are provided to computers and other devices). An investment of £300k has been issued to the company which will see the company move into the Daresbury Science and Innovation Campus.
The Interim VCLF is a combination of loan, equity and quasi-equity funding to support business growth. Loans range from £50,000 to £250,000 with Equity and Mezzanine finance available up to £1m for initial investments.
It is vital, particularly in challenging trading conditions that we ensure SME's in the region can access the funding required to support investment and growth. The message to businesses in the Northwest is that we have funding available now for growth businesses and VCLF funding is here ready for applications.
For more information on Finance for Business please visit: www.nwdabusinessfinance.co.uk
ENDS
Notes to Editors:
The JEREMIE initiative offers EU Member States, through their national or regional Managing Authorities, the opportunity to use part of their European Union (EU) Structural Funds to finance small and medium-sized enterprises (SMEs) by means of equity, loans or guarantees, through a revolving umbrella fund. The initiative was developed by the European Commission (EC) and the European Investment Fund (EIF), which is part of the European Investment Bank (EIB) Group.
JEREMIE provides for a range of debt and equity financial tools to obtain the most appropriate allocation of funds according to national, regional or local requirements.
The regional VCLF is funded by a European Regional Development Fund grant under the 2007-13 programme and is matched equally by private sector loan funding. The Northwest (JEREMIE Fund) will run for an initial investment period up to the end of December 2015.
ERDF: Between 2007 and 2013 the Northwest of England will receive a total of £521million (dependent on exchange rate) from the European Regional Development Fund (ERDF).
Managed by the Northwest Regional Development Agency (NWDA), this funding will enhance the competitiveness of the region's economy by supporting growth in employment and enterprise.
Key targets for the NWOP include:
• Creating 26,700 net additional jobs by 2015
• Generating £1.17bn additional annual GVA by 2015
• Supporting a 25% reduction in addition CO2 emissions
generated by the ERDF Programme.
The Northwest Regional Development Agency (NWDA) works to deliver economic success in England's Northwest by building the competitiveness of its businesses, people and places. Utilising our technical expertise and strategic influence, we help the region's 250,000+ businesses to develop and grow, as well as supporting international trade and encouraging inward investment.
For further information please contact Neil Roscoe,
Senior Press Officer on 01925 400232 or mobile 07980 713282
or neil.roscoe@nwda.co.uk
