The Scottish Investment Bank has selected Glasgow-based Maven Capital Partners UK LLP to manage the Scottish Loan Fund.
The new fund will target Small to Medium Sized Enterprises (SMEs) with an established operational trading base in Scotland and an annual turnover of more than £1m.
Applicant businesses should have sustainable operating profits, positive cash generation and operate in a growth and/or export market.
The level of funding available to each company will be between £250k and £5m of mezzanine loans, though the great majority of loans will be for less than £2m.
The fund is sector agnostic but certain sectoral activities are excluded due to European Regional Development Fund (ERDF) rules.
Commitments came from the public sector with the Scottish Government, Scottish Enterprise, Highlands & Islands Enterprise and the European Regional Development Fund, which invested £55m.
Additional private sector commitments having the potential to increase the size of the fund are currently under discussion.