NW Fund has £4m deals pipeline
THE £185m North West Fund has completed five investments and has another 16 in the pipeline.
The European Investment Bank-backed loan and equity provider said it had received 600 enquiries since it launched in January.
It will provide funds, ranging in value from £50,000 to £2m, to small and medium-sized enterprises (SMEs) until 2015.
In its first quarter it invested £705,000 in five firms and has a further 16 deals, worth £4m, approved. A loan of £100,000 has gone to Manchester-based Glamorous Travel; Knowsley glass maker Tuff X has received a £400,000 loan, and £150,000 has gone to Alston-based Totalpost Services Plc.
No information was available on the other two completed deals. Meanwhile, 214 applications for more than £40m of funding are being assessed by six fund managers.
Andy Leach, chief executive of North West Business Finance – the body administering the fund – said: “With bank lending in short supply, it is not surprising that there has been significant interest in the business loan fund and venture capital fund from early stage companies.
“The North West’s digital and creative sector, which is being catalyst by new developments such as MediaCity and The Sharp Project, has been the most pro-active in looking for investment from our dedicated sector funds.
“With five deals already completed and a number of investments imminent, The North West Fund is planting the first seeds to creating an enduring financial legacy in the region.”
An initial £170m of cash has been subdivided into six pots, including a £45m development capital fund, a £30m venture capital fund and a £35m loan fund. There are also three sector-based funds – Digital & Creative (£15m), Energy & Environmental (£20m) and biomedical (£25m). Some £15m has been held back to invest in the areas with the greatest demand as the funds wind down.
