NW Business Finance splits Development Capital fund
NORTH West Business Finance, which runs the The North West Fund has reorganised its under-performing Development Capital Fund.
As a result, two new Funds have been created – The North West Fund for Loans Plus, managed by Cardiff-based FW Capital and The North West Fund for Mezzanine, managed by Enterprise Ventures.
The Development Capital Fund missed its lending targets for 2012 and fund manager YFM Equity Partners relinquished its role in October last year after a restructure of its North West operations .
NW Business FInance said the changes meant the new funds were more closely tailored to the investment needs of established SMEs in the North West.
The £35m North West Fund for Business Loans will be renamed The North West Fund for Loans Plus and will build on FW Capital’s success in the SME loan market.
FW Capital will now be able to provide loans of £50,000 to £750,000 from the newly increased £45 million fund.
Enterprise Ventures meanwhile will manage the newly-created £15m North West Fund for Mezzanine which will offer mezzanine loan and equity investments of between £750,000 to £2m.
Cliff Maylor, chief executive officer at NWBF said: “The North West is home to a broad range of highly successful, established businesses, with ambitious plans for growth.
“It is essential that we ensure our Fund is accessible to these businesses. We believe that this re-structure of our former Development Capital Fund will provide a transparent and flexible option which allows businesses to grow rapidly, whilst benefiting from the experience and guidance of our supportive fund managers.
“Adopting what amounts to a joint venture relationship is a commercially astute approach, providing a funding solution for many North West businesses.
“We are pleased that both fund managers are part of our existing fund management team and we look forward to hearing about their continued success, supporting businesses with the new funds.”
Gary Guest, FW Capital’s fund manager in the North West said: “The North West Fund for Business Loans has been a great success since launch, so we are delighted to extend its reach with larger loans up to £750,000.
“This is excellent news for established SMEs who may be having difficulty raising growth funding from traditional sources. It increases our flexibility and FW Capital now has the potential to lend to many more established SMEs.”
Jonathan Diggines from Enterprise Ventures, managers of The North West Fund for Venture Capital, and The North West Fund for Mezzanine, said: “We have worked with NWBF and FW Capital to broaden the scope of The North West Fund – in offering mezzanine funding to qualifying North West businesses in the range from £750,000 to £2m.”
