North West Fund announces first investment ahead of launch
THE new £185m North West fund has made its first investment ahead of today’s formal launch event.
The investment, worth £100,000, has been made into Manchester-based company Glamorous Travel. It was founded by Yan Zhang and specialises in offering special-interest tour packages for Chinese nationals visiting the UK and Europe.
The investment was made by Enterprise Ventures, which is responsible for the £30m venture capital element of the North West Fund.
Fund manager Richard Young said: “This is a great first investment from The North West Fund for Venture Capital and demonstrates our commitment to supporting the region’s exceptional entrepreneurs.
“Yan has demonstrated her business flair in both the Chinese travel industry and here in the UK. This funding will support the business to allow it to take advantage of a market in Chinese inbound tourism, which is growing at a rapid rate”.
Andy Leach, chief executive officer of North West Business Finance, said: “I’m delighted that The North West Fund for Venture Capital is officially out of the blocks.
Leach will tell an audience at the fund’s launch event in Liverpool this morning that the North West Fund has already had 300 enquiries, 150 of which are being reviewed by the fund’s managers. He added that three other investments have also been made by the fund, which have not yet been announced.
“I am genuinely delighted with the progress made since The North West Fund opened for business in December 2010,” he said.
“It is testament to the commitment of the six fund managers selected to invest the Fund, coupled with a clear market need, that we have already succeeded in completing four investments.
“We anticipate that each of our six sub-funds will have completed its first investment by the end of March 2011.
NWDA chairman Robert Hough said: “It gives me great pleasure to be involved in the launch of The North West Fund, which is the largest public sector fund of its kind in the UK and one of the largest in Europe.
“The NWDA has worked hard to secure this vital fund for the region, which will improve the economic performance of England’s Northwest with an estimated GVA increase of £250m by 2015.”
AROUND £15m of the fund has been earmarked to support fast-growing digital and creative firms.
The Northwest Fund 4 Digital and Creative has already received 70 bids. It is being managed by London-based AXM Venture Capital which has handled a similar fund in the capital worth £6.5m.
Former PKF corporate finance partner David Smith will run the fund’s Manchester office while Rajesh Sharma, a former investment manager at the Merseyside Special Investment Fund, will handle Merseyside. European Union rules stipulate that 40% of the cash is spent in Merseyside.
AXM’s chairman Fred Mendelsohn and John Handley will also work on the fund. Until 2015 it will be making equity investments of between £50,000 to £1.5m in companies ranging from start-ups to more established ventures across the North West. To read more click here.
