Finance Yorkshire announces Fund Managers
The new Yorkshire wide Fund for growing businesses, Finance Yorkshire, announces that it has now signed contracts with the Fund Managers responsible for investing the money, when the Fund starts investing in early August 2010
FSY, EV and NorthStar Equity Investors in consortia with NEL will manage the £90m fund, specifically available to help small and medium businesses (‘SME’s’) to meet the gaps in funding they need for growth and development.
The Fund, which will be promoted under the single brand of Finance Yorkshire, is the new venture and capital loan fund provided by Yorkshire Forward to invest in businesses across Yorkshire and Humber. It is set to complete its investment phase by December 2013.
The £90m Fund is split into three sections, targeting loan and equity investments into start-ups, technology based companies and growing SME’s.
The Seedcorn Fund, managed by EV, will invest up to £780,000 in pre-revenue, high risk, early stage innovative technology and knowledge-based businesses. The Seedcorn Fund has a total of £15m to invest and will be making tranched investments in companies that have the potential of high returns.
The Small Loan Fund will be managed by FSY and will be providing gap loan finance for capital expenditure and working capital to assist with the growth and development of businesses. The loans will typically be unsecured and will range from £15,000 to £150,000. The Small Loan Fund has a total of £27m to invest.
Northstar Equity Investors, in conjunction with NEL, together are responsible for managing the Equity Fund, with a total of £48m available to support larger expansion plans. The Fund will make equity based investments, including mezzanine finance from £100,000 to £2m and will support a range of activities including growth, capital expenditure and some larger start-up ventures.
James Newman, Chairman of Finance Yorkshire, said: “The Fund Managers we have chosen are some of the best in the country in delivering this kind of finance to businesses. They are extremely knowledgeable and experienced in this field and we are pleased to have them on board.
“The Fund Managers have an important and fulfilling role establishing hundreds of new businesses, creating thousands of jobs in Yorkshire and Humber and helping business leaders develop their companies to become the best they can be.
“This multi-million investment will develop organic economic growth.. Having a Yorkshire-based investment fund will pool together the skills needed to make businesses successful.
The Fund Managers will also be working closely with other public and private sector funders in Yorkshire, such as the banks, private investors and business angel groups, as well as financial and professional intermediaries, to assist SME’s to grow and develop here in Yorkshire.”
The Fund will build on the success of Partnership Investment Finance (PIF) and South Yorkshire Investment Fund (SYIF), which have now completed their investments. It will provide Yorkshire-wide access to finance support for the first time on equal terms for all qualifying businesses.
For more information about Finance Yorkshire, please visit www.finance-yorkshire.com or ring 0845 649 0000
