Northwest Business Finance Ltd announced the 6 successful fund managers for the £184.8m North West Fund.
The North West fund will focus on Northwest-based businesses providing them with debt, equity and quasi-equity. It will be ready to receive applications for funding between July and August 2010.
The 6 funds will be managed by 6 fund managers under contract with Northwest Business Finance NWBF, which has been established to oversee the delivery of the fund, under the Joint European Resources for Micro to Medium Enterprises Initiative (JEREMIE) in the Northwest.
The North West Fund’s vehicles include:
– Development Capital (£45m) managed by YFM Private Equity. It will provide SMEs with equity, quasi-equity (mezzanine) capital and loan support. This fund will have a broad sector range, with an emphasis and focus on the regional economic priority sectors, including technology.
– Business Loan FW (£35m) managed by Capital Ltd. It will provide loans between £50,000 to £250,000 to SMEs with actual or potential revenue streams, but whose investment and funding needs are not fully met by the banking sector, including the Enterprise Finance Guarantee Scheme.
– Venture Capital (£30m) managed by Enterprise Ventures Ltd. It will provide early stage finance for SMEs across the broad range of new businesses covering proof of concept, pre-start, start-up, seed capital, gap venture finance and venture capital funding, including follow-on investments.
– Biomedical (£25m) managed by Spark Impact Ltd.
– Energy & Environmental (£20m) managed by CT Investment Partners LLP.
– Digital & Creative (£15m) managed by AXM Venture Capital Ltd.
These latest three priority sector funds will provide both venture capital and development capital investments.
The North West Fund is made up of a £92.4m ERDF grant and a £92.4m loan which is expected from the European Investment Bank. In addition to this funding, the 6 fund managers are expected to secure over £200m of co-investment capital from finance angels, pension funds, banks, private equity investors, venture capital, and other private funds. It is expected that this initiative will generate total funding in excess of £400m.
The fund will run for an initial investment period up to the end of December 2015.