Top dealmakers launch recovery fund NorthEdge

FOUR leading dealmakers, including the former Northern bosses of Lloyds TSB Development Capital, have teamed up to launch a new a corporate recovery fund.

NorthEdge Capital launches with £10m committed for deals in the short term, and will look to raise up to £200m in the next 12 to 18 months.

The new venture has been set up by former LDC pair Grant Berry and Andy Ball, banker Tim Murphy, latterly Head of Large Corporate with HBOS and entrepreneur Dan Wright, a former investment banker and current chairman of Manchester textile group Vision Support Services.

Between them, the NorthEdge team has been responsible for actual realised returns of over £450m over the last few years in both distressed and mid-market  private equity deals from over £200m invested across the North.

The quartet have invested equally to form NorthEdge, which is based in offices in Spinningfields in Manchester.

They will focus on opportunities with businesses turning over at least £10m a year based in the North and Midlands.There is no bias towards any specific business sector.

Partner Grant Berry, pictured, told TheBusinessDesk:”We are really excited and believe there’s a lot of opportunity out there.We bring different skills to the table – Andy and I in private equity, Tim in banking and debt restructuring and Dan in equity and turnaround situations.

“We are looking for fundamentally strong operational businesses where there is an issue of financing – perhaps they are carrying too much debt. We want to bring our experience to bear to help all stakeholders.

“We are looking to restructure and revitalize struggling businesses, delivering high returns for our Investors whilst preserving jobs in the region”.

Mr Berry said the partners would be involved in a hands-on manner, but said no deals were imminent.

“We want to focus on the launch and getting the NorthEdge name known in the first few weeks. We have a cornerstone commitment of £10m from one individual private investor and  we will also look to raise the fund alongside looking at deals.

“We know there is competition in the region and there are some quality outfits around, but we feel; there is plenty of opportunities in the market place.”

He said the goal was for up to four deals in the next 12 months.