YFM Equity Partners, the UK manager of the £45m North West Fund for Development Capital, has launched its new mezzanine finance product to support growing businesses in the North West that require up to £2m of finance.
The MEZZ product is suitable for businesses that need more resources to finance their expansion plans, raise money for capital expenditure, to develop new markets, recruit new staff or indeed to fund every-day cash flow needs but do not want to raise traditional equity finance.
The fund is available to North West of England, UK-based companies more than 5 years old with annual profits greater than £250k. The investment, which ranges from £250k and £2m, will be in the form of a loan note with an option to acquire up to 10% of the equity.
The loan has a fixed interest rate and a repayment profile of up to 7 years.