Finance Birmingham’s first Mezzanine Fund transaction is Deal of the Month

THE transaction which saw Black Country property maintenance business Nationwide Property Assistance become the first company to be backed by Finance Birmingham’s £56m Mezzanine Fund has been chosen as our Deal of the Month for September. 

Fund manager Finance Birmingham recently-launched £56m fund is aimed at helping SMEs in Greater Birmingham, Solihull and the Black Country to grow.

Finance Birmingham – the funding arm of Birmingham City Council – has said the fund could be a catalyst that will aid more than 40 companies to expand and will support 5,000 local jobs.

The Mezzanine Fund, supported by the Government’s Regional Growth Fund, is the largest individual growth capital fund for SMEs in the West Midlands.

Businesses can apply for loans of between £250,000 and £2m to fund development and growth plans.

Nationwide Property Assistance, which has also been supported by Birmingham-based corporate finance firm Blue Sky, has undergone a management buy-out that will enable the business to further expand.

The cash from the Mezzanine Fund will help the company create an additional 30 new jobs, while safeguarding a further five.

NPA provides a nationwide 24/7 property maintenance service to some of the UK’s leading property builders and housing associations from its call centre at Trigate House in Oldbury. 

Graham Mold, investment director at Finance Birmingham, said: “Housebuilding grew at its strongest rate for more than a decade in July, and demand for NPA’s services will grow with this expanding market. Given the experience of the team and their commitment to outstanding customer service, we are confident that the business will go from strength to strength.
 
“As the first to draw on the Mezzanine Fund, this deal demonstrates how we can help businesses realise their ambitions and we are keen to hear from more.”

Explaining the Deal of the Month choice, TheBusinessDesk.com’s West Midlands editor Andy Coyne said: “Getting funding to SMEs with the potential to grow is the Holy Grail as far as the UK economy is concerned and although a number of funding streams exist, I have been impressed with how little time has lapsed  between Finance Birmingham setting up its Mezzanine Fund and the money getting to where it is most needed: into the bank accounts of SMEs.

“And with Blue Sky also involved in the deal it shows the public and private sectors can work together effectively to provide funding solutions.

“With a £56m pot of money to play with, the Nationwide Property Assistance deal will hopefully be the first of many such funding deals.”

To read about all of September’s deals in the region click here .
 

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